AT&T Stock Spikes 6.93% on Strong Earnings Report

Headline: AT&T (NYSE: T) shares surged 7.1% in afternoon trading after releasing fourth-quarter results that surpassed analysts' expectations.

Key Points:

* EPS exceeded estimates, supported by strong postpaid phone and broadband net additions.
* Revenue narrowly beat Wall Street's forecasts.
* The company reiterated its previously provided 2025 guidance, providing comfort to investors.

Market Reaction:

* AT&T's stock movement indicates market confidence in the company's recent performance.
* The gain is the second significant increase in the past year, with the previous being driven by the release of a long-term financial plan.

Financial Outlook:

* Management projects low single-digit consolidated service revenue growth through 2027.
* Annual EBITDA growth is expected to exceed 3%, driven by Consumer Wireline EBITDA.
* The company anticipates strong free cash flow generation, reaching $16 billion in 2025 and $18 billion+ by 2027.

Shareholder Returns:

* Management plans to return $40 billion+ to shareholders over the next three years through dividends and share repurchases.

Growth Strategy:

* Expand fiber broadband network to cover 50 million+ locations by 2029.
* Modernize 5G wireless network to enhance speed and coverage for 300 million+ people by 2026.
* Streamline operations by selling DIRECTV stake to TPG, generating $5.4 billion in cash payments.

Stock Performance:

* AT&T has gained 6.7% since the beginning of the year.
* The stock reached a new 52-week high of $24.36 per share.