S& P 500 hits all time highs U.S.-Japan trade deal optimism
Investing.com - AT&T posted better-than-anticipated wireless subscriber additions in the second quarter on Wednesday, as the telecoms group pushes to entice customers with options that bundle high-speed fiber offerings and 5G mobile services.
The U.S. wireless carrier, which has been grappling with intense competition from the likes of Verizon (NYSE:VZ) and T-Mobile, reported 401,000 net monthly bill-paying wireless phone subscribers. Bloomberg consensus forecasts had called for 300,876.
Like Verizon, AT&T (NYSE:T) also said that it expects to see a boost from new tax laws in President Donald Trump’s signature fiscal policy bill, which was signed into law earlier this month. Included in the legislation is a section allowing firms to immediately write off the full cost of some new equipment.
AT&T said it now anticipates $6.5 billion to $8 billion in cash tax savings during its 2025-2027 financial years, relative to the guidance it provided at its investor day last year.
This will translate into savings of $1.5 billion to $2 billion in 2025, followed by reduced expenses of $2.5 billion to $3 billion in 2026 and 2027.
A total of $3.5 billion of savings will then be invested into AT&T’s network to accelerate the build-out of its fiber internet capabilities. AT&T and its peers have been racing to bolster their fiber-optic assets in order to tap into growing consumer data use.
Still, AT&T maintained its long-term financial outlook. Earlier this week, Verizon lifted the lower end of its annual profit guidance.
During the second quarter, AT&T’s adjusted core earnings came in at $11.7 billion on revenue of $30.8 billion, compared with estimates of $11.6 billion and $30.43 billion, respectively.
Shares of AT&T were lower in premarket U.S. trading.