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AT&T raises FY outlook after strong Q1
2014-04-23 09:03:00| Telecompaper Headlines
(Telecompaper) AT&T raised its sales growth forecast for the full year after a strong first-quarter performance. Revenues in the first three months of the year rose 3.6 percent to USD 32.5 billion, its strongest growth in two years, and the US operator now expects to achieve at least 4 percent growth over the full year. The operating margin improved to 19.3 percent from 18.9 a year ago, and net profit rose to USD 3.7 billion or 70 cents a share, from USD 3.7 billion or 67 cents a share. Adjusting for USD 0.01 per share of Leap transaction-related costs, EPS rose to USD 0.71 from USD 0.64 in the year-ago quarter, an increase of almost 11 percent. The Leap takeover closed on 13 March. AT&T expects USD 1.2 billion in integration costs for the acquisition in the next two years, while the takeover will have a negative impact of USD 0.05 on EPS this year. Despite this, AT&T still expects stable margins this year and mid-single digit growth in adjusted EPS. The operator forecast capital expenditures around USD 21 billion in 2014, after USD 5.8 billion in Q1, and free cash flow of USD 11 billion over the full year, versus USD 3.0 billion in Q1.
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Category:Telecommunications