Telecommunications

AT&T shared its third-quarter free cash flow guidance at an industry conference. The company expects to deliver $4.5 billion to $5 billion in free cash for the current quarter. AT&T reiterated its full-year free cash flow guidance of $16 billion or more. The stock rose almost 2% in premarket trading after the release of the guidance. AT&T needs to make up for the $11 billion in free cash flow in the third and fourth quarters to meet its full-year guidance. Analysts expect AT&T to generate $4.955 billion in free cash flow in the third quarter. Free cash flow is an important metric for telecom stocks and is used to pay dividends. AT&T currently pays $1.12 in annual dividends per share.

AT&T CEO John Stankey says the telecommunications company continues to work with regulators on the potential need to remediate lead-sheathed cables, but that the company “does not believe there is a public health crisis,” a concern that has emerged following a recent series of stories in the Wall Street Journal. Speaking at the Goldman Sachs Communacopia and Technology conference in San Francisco on Wednesday, Stankey said the company has taken steps to understand the issues the Journal has raised, but that AT&T feels like the Journal was “over-writing their headlines ” by suggesting the issue pointed to considerable risk to the health of both the public and AT&T employees. “We will continue to work with regulators, and we will make adjustments if required,” he said. “But we don’t believe there is a public health crisis, and we believe we’ve been responsible … We will work collaboratively to make sure our

AT&T CEO John Stankey is leaving the door open to more price increases. Speaking at the Goldman Sachs Communacopia + Technology Conference, Stankey said the company’s massive investments in its fiber-optic network are driving benefits to its wireless service. “It’s driving a lot more value back to the customer. They’re using more of the product, they’re relying more on it, and it performs better,” Stankey said. “When you have a satisfied customer who gets more utility out of the service they use, you do have the opportunity to take price in places and you should.”

AT&T Reports Confident In Full-year Guidance, Including Free Cash Flow Of Better Than $16B And Adjusted EBITDA Growth Of 3+ Percent.

AT&T Expects To Deliver Continued Profitable 5G And Fiber Net Additions In Q3.