AT&T reported solid results for its final quarter of full ownership of WarnerMedia, but its stock plunged after the company lowered its outlook for full-year free cash flow.Excluding items, AT&T posted earnings per share of 65 cents in the quarter ending June 30, beating Wall Street analysts’ consensus estimate of 61 cents.
Revenue matched the Street view at $29.6 billion, up 2% from a year ago when DirecTV and WarnerMedia are not counted in the 2021 quarter.Shares in AT&T fell 10% to $18.43 at the start of the trading day, slipping below their level just after the April 8 close of the WarnerMedia deal.
In that $43 billion transaction, the telecom giant spun off WarnerMedia into a new entity, Warner Bros Discovery, retaining a 71% stake.
Last August, AT%T spun off pay-TV operator DirecTV into another new entity, with private equity firm TPG taking a 30% stake.The company added 813,000 net new monthly bill paying wireless phone subscribers in the quarter, as well as 316,000 new broadband customers.AT&T lowered its full-year free cash flow guidance to a $14 billion range from a $16 billion range.
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