By Sam Boughedda
AT&T (NYSE:T) shares are gaining premarket Wednesday after it topped fourth quarter earnings expectations, driven by sustained momentum in customer additions.
The telecommunications business posted Q4 earnings of $0.61 per share, $0.04 better than the analyst estimate of $0.57. However, revenue came in below expectations at $31.34 billion versus the consensus estimate of $31.43B, but it increased 0.8% year-over-year.
The company's revenue increase was driven by higher mobility, Mexico, and consumer wireline revenues, but it was impacted by lower business wireline revenues.
AT&T's total wireless net adds were 6.4M, which includes 1.1M postpaid net adds.
"Our consistent go-to-market strategy and the simplicity of our offerings drove continued robust, high-quality wireless and fiber customer additions in the fourth quarter," said John Stankey, AT&T CEO.
For FY23, AT&T expects adjusted earnings per share of $2.35 to $2.45.
Following the report, Goldman Sachs said AT&T reported "solid 4Q22 results that beat across all key financial metrics."
"The company also provided 2023 guidance that is a little lower than we had expected for most financial metrics, but that we see as conservative based on the company's operating momentum existing 2022. As such, we view this as a solid report and outlook and expect a positive initial reaction in the stock," Goldman Sachs adds.
AT&T shares are trading 2% higher Wednesday, premarket.