AT&T reiterates 2023 guidance for $20 billion free cash flow range

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(RTTNews) – AT&T (T) provided pro forma 2022 and 2023 guidance for a standalone business, reiterated guidance for a range of $20 billion in free cash flow in 2023.

For 2022, the company expects adjusted earnings per share to be between $2.42 and $2.46, compared to $2.41 on a pro forma basis in 2021. Analysts polled by Thomson Reuters expect the company to say earnings of $3.13 per share for fiscal year 2022. Estimates generally exclude special items.

The company expects low single-digit total revenue growth in 2022, compared to $118.2 billion on a pro forma basis in 2021, driven by wireless revenue growth of 3% or more and a Broadband revenue growth of 6% or more.

For 2023, the company expects adjusted earnings per share to be between $2.50 and $2.60. Analysts expect annual earnings of $3.22 per share.

The company expects to continue low-single-digit revenue growth in 2023, driven by low-single-digit wireless revenue growth and a ramp-up in mid-to-high-to-high broadband revenue growth. a number.

AT&T plans to double its fiber footprint to more than 30 million locations, including doubling the number of locations for its business customers to 5 million. In doing so, the company expects to add 3.5 to 4 million customer locations each year. The company also plans to enhance the country’s best and most reliable 5G network by rolling out 120 MHz of midband spectrum to cover more than 200 million people by the end of 2023.

AT&T will also continue its transformation initiatives and sees significant opportunities to optimize its cost structure. By the end of 2023, the company expects to achieve $6 billion in fulfillment cost savings.

AT&T will increase its investments to deploy fiber and 5G and generate sustainable earnings growth. In 2022, AT&T plans capital investments of around $24 billion. The company expects capital investment in 2023 to be similar to 2022 levels, then to start to taper to the $20 billion range from 2024.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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