AT&T Shares Move In The #PreMarket Following Early Morning Announcement
Early Tuesday morning, AT&T (NYSE: T) released an announcement describing its Project VIP network transformation plan, as well as information on its second quarter wireless trends and increased guidance.
The company's shares dropped slightly to $35.33 following the announcement.
The company is saying that it is now ahead of schedule on its Project VIP plan announced back in 2012 and has provided the following details:
- 4G LTE now covers ~290 million people.
- Fiber is expected to reach 400,000 new business customers by the end of the second quarter
Second Quarter Mobility
For the second quarter AT&T is expecting:
- Over 800,000 postpaid subscriber net adds
- Postpaid churn of 0.95 percent or below
- AT&T next smartphone sales are expected to be ~50 percent of total sales at approximately 3.2 million units
- Flat service revenue growth for the second quarter
- Wireless service EBITDA margins expected to be 40 percent for the remaining three quarters of 2014
Full Year Guidance
- Revenue growth raised to be in the five percent range
- Reaffirmed guidance for consolidated margins, adjusted EPS growth, capital expenditures, and free cash flows.
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