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The
company also announced Tuesday that it expects its improved
financial performance to support more than $40 billion of
anticipated shareholder returns through dividends and stock
buybacks over the same time. This includes an initial $10
billion stock repurchase that it expects to complete by the end
of 2026.
“Over the last four years, we’ve achieved durable and profitable
subscriber growth, generated attractive returns on network
investment, and strengthened our balance sheet,” AT&T CEO John
Stankey said in a statement.
Shares of AT&T rose about 3% before the market open.
The Dallas company said that it's looking to expand its fiber
broadband network to more than 50 million locations by the end
of 2029. It is actively working to exit its legacy copper
network operations across the large majority of its wireline
footprint by the end of of that year as well.
AT&T said that it expects to have largely completed the
modernization of its 5G wireless network with open technology by
2027, with deep mid-band 5G spectrum covering more than 300
million people by the end of 2026. The company said that the
network will be able to support super-fast download speeds and
serve as a platform for new product and GenAI innovation.
AT&T now anticipates 2024 adjusted earnings in a range of $2.20
to $2.25 per share. Its prior outlook was for $2.15 to $2.25 per
share.
Analysts polled by FactSet expect full-year earnings of $2.21
per share.
For 2025, AT&T is calling for adjusted earnings of $1.97 to
$2.07 per share, excluding DirecTV. It foresees adjusted
earnings per share accelerating to double-digit percentage
growth in 2027.
Free cash flow is expected to total more than $16 billion next
year, excluding DirecTV. AT&T predicts annual growth of
approximately $1 billion, resulting in free cash flow of more
than $18 billion in 2027.
AT&T sold a 30% stake of DirecTV to private equity firm TPG in
2021 for $16.25 billion. It is now in the process of selling its
remaining 70% stake in DirecTV to TPG for about $7.6 billion,
which is expected to close next year.
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