AT&T Blames Hurricanes, Mexico Earthquake For Q3 Revenue, Video Subscriber Losses
Oct 13 2017 by Johnny Bowman
AT&T Inc. said Wednesday that recent hurricanes to hit the USA and Caribbean and earthquakes in Mexico would reduce third-quarter earnings per share by 2 cents and revenue by almost $90 million.
AT&T revealed damage to its network and other property plus the costs to restore services, along with revenue declines from waived charges, would shave nearly US$90mln from third quarter consolidated revenues, while reported pre-tax earnings would take a US$210mln hit, equivalent to around two cents a share.
In the three months to the end of September the group saw its DIRECTV NOW service add around 300,000 (net) customers, but total U.S. video subscribers were down about 90,000.
AT&T says it expects further reductions spilling into Q4.
Bank of America Corporation (NYSE:BAC) Quarterly Analysis
Chicago Partners Investment Group LLC grew its holdings in shares of Bank of America Corporation by 11.0% in the 2nd quarter. After a recent look, shares have been seen 6.84% from the 200-day moving average, and 3.89% from the 50-day moving average.
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In the filing, AT&T reiterated its third quarter guidance and lowered it from previously. The carrier still reiterated its full-year 2017 guidance for mid-single digit adjusted earnings growth, adjusted consolidated operating margin expansion, capex of about United States dollars 22 billion, and free cash flow at the low end of the USD 18 billion range.
Even though the pre-released linear video subscriber losses were higher than expected and storm impact was a short-term negative, AT&T is clearly "not the only one being impacted by these trends in Q3", Wells Fargo Senior Analyst Jennifer Fritzsche wrote in an investor note. AT&T, which is the number two USA wireless carrier and also owner of DirecTV, said in the filing that it had lost 90,000 US video subscribers, now at 300,000 subscribers.