AT&T Stock Soars 6% After Strong Q4

Written by Jessica Gwathney

January 27, 2025

AT&T (T) is seeing a 6% surge in its stock price during midday trading following a strong set of Q4 results, reflecting continued growth in its subscriber base and impressive contributions from its DIRECTV investments. The telecommunications giant reported significant improvements in its net income for the quarter, which helped boost investor confidence despite some challenges over the past year.

A Strong Quarter: Q4 Highlights

On a GAAP basis, AT&T reported a net income of $4.03 billion, or 56 cents per share, compared to $2.13 billion or 30 cents per share during the same period last year. This represents a notable year-over-year increase, and the improvement is largely attributed to higher contributions from AT&T’s DIRECTV investments. The performance of DIRECTV, which has been a key focus for AT&T in recent quarters, has played a pivotal role in driving profitability, helping to offset other areas that faced more pressure.

Despite the strong quarterly performance, AT&T did see some challenges for the full year. For 2024, the company reported a net income of $10.75 billion, or $1.49 per share, down from $14.19 billion or $1.97 per share in 2023. The decline was primarily due to higher asset impairment and restructuring charges, which impacted overall profitability. When excluding non-recurring items, AT&T’s adjusted earnings for 2024 dropped to $2.26 per share, down from $2.41 per share in 2023.

Subscriber Growth: A Bright Spot for AT&T

A key factor behind AT&T’s Q4 success was its continued growth in both phone and internet subscribers. The company announced 482,000 postpaid phone net additions, maintaining an industry-leading churn rate of just 0.85%. This low churn rate indicates that AT&T is successfully retaining its customers, which is a critical metric in the competitive telecommunications industry.

Additionally, AT&T’s Fiber segment continues to show strong momentum. The company reported 307,000 net additions for AT&T Fiber, marking the 20th consecutive quarter with over 200,000 net adds. The company’s focus on expanding its fiber broadband network has clearly paid off, positioning it well to capture more market share in the growing demand for high-speed internet services.

Optimism for 2025

While AT&T’s full-year results were impacted by restructuring and impairment charges, the strong growth in its core business segments—particularly in mobile and fiber—has given investors reason to be optimistic. With the ongoing success of its postpaid phone and Fiber services, coupled with a stronger-than-expected contribution from DIRECTV, AT&T is well-positioned to continue driving growth in 2025.

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