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AT&T Shares Move In The #PreMarket Following Early Morning Announcement

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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.

Project VIP
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

  • U-verse video additions bundled with broadband expected to continue to perform well
  • Continued growth in business high-speed broadband adds
  • Mid-teen growth in strategic business services revenue
  • Continued pressure to Wireline margins

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.

Posted-In: Earnings News Guidance


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