|Results of the AT&T result|
|Metric||Beat / Miss / Match||Reported value||Analyst forecast|
|Adapted EPS||Beat||$ 0.86||$ 0.78|
|revenue||Beat||$ 43.9 billion||$ 42.3 billion|
|Additional postpaid telephone subscribers||Beat||595.0K||248.1K|
Source: Predictions based on analyst consensus from Visible alpha
The central theses
- Additional subscribers to postpaid telephones were more than double what analysts had forecast.
- Postpaid phone subscriptions are a key growth area given the decline in some other legacy AT&T stores.
- AT&T recorded a total of 2.7 million domestic HBO Max and HBO subscriber net additions.
AT&T (T) Financial Results: Analysis
AT & T Inc. (T.) reported Results for the first quarter of the financial year 2021 that exceeded the expectations of the analysts. Sales were also higher than forecast. Additional postpaid telephone subscribers who AT & T. is known as “Postpaid Phone Net Additions” and came in at 595,000, more than double what analysts estimate. It was the strongest first quarter for net additions in at least five years. The company’s shares rose more than 1% in pre-market trading. Last year the shares of AT & T a Total return of 8.1% and is thus well below the total return of the S&P 500 of 52.5%.
AT&T (T) Additional subscribers to postpaid telephones
Additional postpaid phone subscribers are a key metric that represents the net difference between the number of new postpaid phone subscriptions added in the quarter and the number of subscriptions canceled. As long as this metric is positive, it means that AT&T is increasing the total number of postpaid phone subscriptions. The addition of new phone subscriptions has become increasingly important recently as some of the company’s other legacy companies decline.
AT&T was able to attract new postpaid phone subscribers, although at least one competitor lost some in the quarter. Rival Verizon Communications, Inc. (VZ) recently reported a net loss of 178,000 postpaid phone calls during the reporting period.
“We have further expanded our customer relationships in our market focus areas of mobility, fiber optics and HBO Max,” said CEO John Stankey. “We had another strong quarter with net additions for postpaid phones, higher gross surcharges, lower churn and good mobility EBITDA growth.” AT&T recorded a total of 2.7 million domestic HBO Max and HBO subscriber net additions, bringing the total domestic subscribers to 44.2 million. The HBO Max business has become especially important as consumer preferences have secularly shifted from traditional satellite and cable television to digital streaming.
AT&T offered some Guidance for the remainder of FY 2021. The company expects Adjusted EPS to remain stable compared to FY 2020 and that consolidated sales will increase by approximately 1% compared to that.
AT & T’s next earnings report (Q2 FY 2021) is expected to be released on July 21, 2021.