UPDATE: AT&T (T) Reports In-Line Q4 EPS, Revenues Miss; Reaffirms FY19 Guidance

January 30, 2019 6:53 AM EST

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(Updated - Included FY19 Outlook Summary)

AT&T (NYSE: T) reported Q4 EPS of $0.86, in-line with the analyst estimate of $0.86. Revenue for the quarter came in at $48 billion versus the consensus estimate of $48.5 billion.

Fourth-Quarter Consolidated Results

  • Diluted EPS of $0.66 as reported compared to $3.08 in the year-ago quarter (2017 impacted by tax reform)
  • Net income of $4.9 billion compared to $19.0 billion in the year-ago quarter (2017 impacted by tax reform)
  • Adjusted EPS of $0.86 compared to $0.78 in the year-ago quarter
  • Cash from operations of $12.1 billion, up 27%
  • Capital expenditures of $4.2 billion
  • Dividend payout ratio 46%1
  • Free cash flow of $7.9 billion, up 78%
  • Consolidated revenues of $48.0 billion

As Part of Fourth-Quarter Results, AT&T Reports:

  • Strong Cash from Operations and Record Free Cash Flow
  • Consolidated Pro Forma Adjusted EBITDA Growth
  • Deleveraging Plan on Track
  • 2019 Guidance Reaffirmed

“Our top priority for 2018 and 2019 is reducing our debt and I couldn’t be more pleased with how we closed the year. In 2018, we generated record free cash flow while investing at near-record levels. Our dividend payout as a percent of free cash flow was 46% for the quarter and 60% for the year, allowing us to increase the dividend for the 35th consecutive year,” said Randall Stephenson, AT&T chairman and CEO. “This momentum will carry us into 2019 allowing us to continue reducing our debt while investing in the business and continuing our strong record for paying dividends.”

2019 Outlook

AT&T expects in 2019:

  • Free cash flow in the $26 billion range;
  • Low single-digit adjusted EPS growth;
  • Dividend payout ratio in the high 50s% range;
  • End-of-year net debt to adjusted EBITDA in the 2.5x range;
  • Gross capital investment in the $23 billion range4

For earnings history and earnings-related data on AT&T (T) click here.

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