AT&T Inc. (NYSE:T) shares rose in pre-market after posting better-than-expected third quarter revenue and earnings and as it raised free cash flow and EBITDA (Earnings before interest, taxes, depreciation, and amortization) guidance for the full year.
The Dallas-based telco said in the third quarter revenue rose 1% to $30.4 billion from $30.04 billion the year prior, ahead of forecasts for $30.2 billion.
AT&T explained that high Mobility, Mexico and Consumer Wireline revenue was offset by lower Business Wireline revenue during the quarter.
Net income of $3.83 billion was down 40% from $6.40 billion the year prior, while adjusted EPS of $0.64 was ahead of the $0.62 forecast.
"Our investments in best-in-class 5G and fiber connectivity are fueling our growth engine. We're gaining profitable customer relationships and becoming more efficient. This is powering our strong business performance and gives us the confidence to raise our full-year free cash flow guidance," said chief executive John Stankey.
The firm now expects full-year free cash flow of about $16.5 billion, versus prior guidance of $16 billion or better.
In the third quarter, free cash flow was $5.2 billion and total debt stood at $138.0 billion at the end of the quarter.
The company also said it expects adjusted EBITDA to grow by more than 4%, versus earlier guidance of more than 3%.
AT&T reported 468,000 postpaid phone net adds with continued strong average revenue per user growth and historically low levels of churn, while consumer broadband revenues rose 9.8%, driven by AT&T Fiber revenue growth of 26.9%.
Shares rose 4.5% in pre-market trading.