Key receivers
- AT&T shares gained on Thursday after the telecom giant’s CFO said he was confident in the company’s outlook.
- AT&T expects current quarter free cash flow of $4.5 billion to $5.0 billion, and at least $16 billion for 2023.
- CFO Desroches reaffirmed previous company statements that lead-coated cables do not pose a public health risk.
Shares of AT&T ( T ) rose 3% on Thursday after the telecom giant’s CFO said he was confident in the company’s outlook.
AT&T CFO Pascal Desroches told an investor conference that AT&T expects free cash flow to be between $4.5 billion and $5.0 billion in the third quarter, the first time it has provided guidance in the current three-month period. It reiterated full-year free cash flow estimates of at least $16 billion.
Desroch added that the company has invested billions of dollars this year to expand its 5G and fiber optic networks, so free cash flow should increase next year as capital expenditures are modest.
Desroch also said AT&T is working with the Environmental Protection Agency (EPA) to investigate the potential environmental impacts of old lead-coated cables in the Lake Tahoe and Detroit areas. AT&T reiterated comments from CEO John Stankey at last week’s conference call and earlier statements from the company that it does not believe the cables are a public health risk. Shares fell after reports of those strings in July.
Despite Thursday’s gain, AT&T shares are down more than 18% for 2023.
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