T - Absolutely a good time to buy. Free Cash Flow is $14Bn instead of $16Bn and the stock drops to $140Bn?
The $2B decline is due to longer collection times for customers, higher costs of adding subscribers and continued pressure in its business services unit. AT&T (T) said that $10B of its free cash flow will come in the second half of this year.
There's no update to the company's 2023 cash flow forecast for $20B, Desroches said. Pressed on confidence in that number, Stankey said they feel "really good" about the mechanical things improving cash flow yields, but that the speed and magnitude of the inflation jump brings uncertainty, and "without seeing how the Fed reacts, how fast we see the curve starting to abate on the inflation side, trying to make that pick right now just feels like it's a bit of an overreaction."
The company has navigated that difficult reality effectively so far, he says, but "not sufficient to cover all inflationary impacts ... We estimate those to be more than $1B above the elevated cost expectations embedded into our outlooks."
So, in the 2nd half, they move to a $20Bn run rate but bad news now is SELLSELLSELL?
For the second-quarter, AT&T (T) earned 65 cents a share on $29.6B in revenue, compared to expectations of 62 cents a share and $29.47B in sales. The company added 800,000 postpaid phone subscribers, making it the best second-quarter in more than 10 years. It also added more than 300,000 Fiber subscribers during the period.
Traders are idiots.
The company said net debt fell by $37B compared to the first-quarter.
AT&T (T) increased its full-year revenue guidance for mobility services to be between 4.5% and 5%, and added that it also expects to generate more than $4B in cost savings by the end of the year.
