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

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Bill McColl
Bill McColl
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Bill McColl has 25+ years of experience as a senior producer and writer for TV, radio, and digital media leading teams of anchors, reporters, and editors in creating news broadcasts, covering some of the most notable news stories of the time.

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Published September 14, 2023
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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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