AT&T Inc. (NYSE:T) reported second-quarter results that continue to underscore the financial strength and ample liquidity of the business even with current economic conditions.
The Dallas-based telecom conglomerate revealed Thursday diluted EPS of $0.17 as reported compared to $0.51 in the year-ago quarter
Adjusted EPS were $0.83 compared to $0.89 in the year-ago quarter (which the company did not adjust for COVID-19 impacts: ($0.03) of incremental costs and ($0.06) of estimated revenues)
Cash from operations proved to be $12.1 billion
AT&T also reported capital expenditures of $4.5 billion, having purchased additional $1 billion in new spectrum for 5G. Free cash flow of $7.6 billion; total dividend payout ratio of 49%. Consolidated revenues were $41.0 billion.
Said CEO John Stankey, "Our solid execution and focus in a challenging environment delivered significant progress in the quarter, most notably the successful launch of HBO Max, resilient free cash flow and a strengthened balance sheet.
"Our resilient cash from operations continues to support investments in growth areas, dividend payments and debt retirement. We are aggressively working opportunities to sharpen our focus, transform our operations and continue investing in growth areas, with the customer at the center of everything we do."
AT&T concluded the news release by admitting, “Due to the continued lack of visibility related to COVID-19 and its economic impact, the Company is providing limited financial guidance. The Company continues to expect the total dividend payout ratio at yearend 2020 to be in the 60s% range and is targeting the low end of that range. The Company also expects gross capital investment in the $20 billion range5 in 2020."
T shares handed over 46 cents, 1.5%, to $29.70.
