AT&T Shares Rise After CFO Says He's Confident in Outlook

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Key Takeaways

  • AT&T shares gained on Thursday after the telecom giant’s CFO said he was confident of the company’s outlook.
  • AT&T anticipates current quarter free cash flow of $4.5 billion to $5.0 billion, and at least $16 billion for 2023.
  • CFO Desroches also reaffirmed previous statements by the company that its legacy lead-sheathed cables don't pose a public heath risk.

Shares of AT&T (T) advanced 3% on Thursday after the telecom giant’s CFO said he was confident of the company’s outlook.

AT&T CFO Pascal Desroches told an investor conference that AT&T anticipates third quarter free cash flow of between $4.5 billion and $5.0 billion, the first time it's given guidance on the current three month period. He reiterated the full-year free cash flow estimate of at least $16 billion. 

Desroches added that free cash flow next year should get a boost as capital expenditures moderate following the company’s investment of billions of dollars this year to expand its 5G and fiber-optic networks.?

Desroches also said that AT&T is working with the Environmental Protection Agency (EPA) to investigate any potential environmental impacts from its legacy lead-sheathed cables in Lake Tahoe and the Detroit area. He reaffirmed comments from CEO John Stankey at a conference last week and an earlier statement from the company that AT&T doesn’t believe the cables pose a public health threat. Shares had tumbled following a July report about those cables.

Despite Thursday’s gains, AT&T shares were down over 18% for 2023.



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  1. AT&T. “Pascal Desroches Updates Shareholders at the 2023 Bank of America Media, Communications & Entertainment Conference.”

  2. AT&T. "Our Response to the WSJ Story on Legacy Lead-Clad Telecom Cables."
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