Takeaways
- AT&T shares rose Thursday after the telecommunications giant's chief financial officer expressed confidence in the company's prospects.
- AT&T forecasts a flow of free cash flow of $4.5 billion to $5.0 billion for the current quarter, and at least $16 billion for 2023.
- CFO Desroches also reaffirmed the company's previous statements that its older lead-sheathed cables do not pose a public health risk.
AT&T (T) shares advanced 3% Thursday after the telecommunications giant's announcement The CFO said he was confident in the company's prospects.
AT&T Chief Financial Officer Pascal Desroches told an investor conference that AT&T expects third-quarter free cash flow to be between 4.5 and 5.0 billion dollars, this is the first time that it has given indications for 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 L& Next year is expected to be boosted by moderating capital spending following the company's investment of billions of dollars this year to expand its 5G and fiber optic networks.
Desroches also said AT&T is working with the Environmental Protection Agency (EPA) to investigate any potential environmental impacts of its older lead-sheathed cables in Lake Tahoe and the Detroit area. He reaffirmed CEO John Stankey's comments at a conference last week and an earlier statement from the company that AT&T does not believe the cables pose a threat to public health. Shares fell following a July report on these cables.
Despite Thursday's gains, AT& T shares are down more than 18% for 2023.
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Source: investopedia.com
