AT&T expects earnings growth over the next three years thanks to momentum from 5G and fiber services.
The company also announced Tuesday that it expects improved financial performance to support more than $40 billion in expected shareholder returns over the same period through dividends and share repurchases. This includes an initial share buyback worth $10 billion, expected to be completed by the end of 2026.
“Over the past four years, we have delivered sustainable and profitable subscriber growth, generated attractive returns on network investments and strengthened our balance sheet,” AT&T CEO John Stankey said in a statement.
Shares of AT&T rose about 3% before the market opened.
The Dallas company said it plans to expand its fiber broadband network to more than 50 million locations by the end of 2029. It is actively working to complete its existing copper network operations across the vast majority of its fixed cable network by the end of that year. years too.
AT&T said it expects to largely complete the modernization of its 5G wireless network with open technology by 2027, with deep mid-band 5G spectrum covering more than 300 million people by the end of 2026. The company said the network will be able to support ultra-fast download speeds and serve as a platform for new products and GenAI innovation.
AT&T now expects adjusted earnings between $2.20 and $2.25 per share for 2024. The previous guidance was $2.15 to $2.25 per share.
Analysts polled by FactSet expect full-year earnings of $2.21 per share.
For 2025, AT&T calls for adjusted earnings of $1.97 to $2.07 per share, excluding DirecTV. It projects that adjusted earnings per share will accelerate to double-digit percentage growth by 2027.
Free cash flow is expected to exceed $16 billion next year, excluding DirecTV. AT&T forecasts annual growth of approximately $1 billion, resulting in free cash flow of more than $18 billion by 2027.
AT&T sold a 30% stake in DirecTV to private equity firm TPG in 2021 for $16.25 billion. It is now in the process of selling its remaining 70% stake in DirecTV to TPG for approximately $7.6 billion, which is expected to close next year.
