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Free Cash Flow: 2Q23 FCF at $4.2B
FCF Company Commentary: "Expect full-year FCF of $16B or better."
21 replies (most recent on top)
Financial shenanigans is paying worker and the dividend. Go AT&T.
Ultimate question, does this signal continued layoffs in Q3 and Q4 2023?
Somebody is not paying attention. Revenue rose despite cheaper products.
"I still don't know how AT&T ultimately overcomes decreasing revenue due to customers switching to cheaper products."
Look at those 6b$ "saved".
Market response is meh: +0.33% in mid afternoon trading.
As has been clear for many quarters, the markets take the rosy results talk with a grain of salt. Our leadership has a credibility problem.
For all the positives—and there were a number of them, most notably an increase in FCF back to somewhat normal levels—analysts are digging a layer deeper and finding problems. Some of our debt is financed long term, but some is not, and we can't get financing at near zero interest rates any more.
As I stared at "$132 Billion" I felt like I was back looking at my ex-wife's credit card statement, "look, I've kept the balance from going up" while significant coin goes toward interest.
Several questions submitted for the webcast have been removed
They beat earnings expectations.
The FCF thing is headed in the right direction.
Expecting continued layoffs.
I still don't know how AT&T ultimately overcomes decreasing revenue due to customers switching to cheaper products.
Have a look at the email sent earlier today about the earnings webcast scheduled for later today. A couple of our superstars will be present, including the infamous proponent of microservices whom we have not heard from in a long time. I want to call your attention to the link in that email where the questions are bing posted. Have a look at what has been posted thus far.
https://www.lightreading.com/5g-and-beyond/atandt-ceo-sees-healthy-growth-in-wireless-launches-cost-cutting-plan/d/d-id/785811?
"AT&T said it completed its $6 billion cost-savings project ahead of schedule, and now it plans to trim another $2 billion or more off its annual expenses over the next three years."
From today's Investor Update:
T is still focusing on debt reduction. Most of cash flow will come from 2nd half of 2023. By 2025 the debt will be reduced from 3.0x currently to 2.5x.
https://investors.att.com/~/media/Files/A/ATT-IR-V2/financial-reports/quarterly-earnings/2023/2q-2023/ATT_2Q23_Earnings.pdf
"Expect to reduce net debt†2 by ~$4B by end of
2023, with net debt-to-adjusted EBITDA of 3.0x
• Expect free cash flow of $16B or better for 2023,
indicating about $11B in second half 2023
In 2H23, expect:
~$11B in free cash flow that will be distributed as follows:
($5B) dividends and distributions
($2B) spectrum clearing costs
~$4B in net debt reduction
On track to reach 2.5x range in first half of 2025
• Going forward, expect majority of cash after dividends
to go to debt reduction"
The Stank on the Stink!!
Who was the "customer migration" that stank referred to a couple of times? So we're at $4ishB with $12B to go by years end. Guess my central office won't have toilet paper ever again. I made a GRE ticket 3mos ago, lmao. Unreal.
External hiring while pushing senior near retirement out the door to nix any benefits? Am I reading this correctly?
The street seems unimpressed. Down 1% today so far.
They say they'll make FCF for the year but half of it is gone and they have what, $6B against a $16B plan?
Two weeks before Qtr heard $2B FCF at best, as we got closer the # kept improving, trying to figure how that came about. Things that make you go HMMM 🤔
“Enough free cash to end this eternal hiring freeze
T is currently overstaffed by about 50K employees. The company is in no position to be hiring. Salaries managers will be expected to do more.
TOTAL SPIN ON THE NUMBERS...Mobility and Fiber numbers are down from previous quarters...Total revenue up a measly 1%???!!! Not much to get excited about.
All Stankey and crew can do is reduce costs....big deal...don't need to pay someone 20M to do that, chapgpt can do it for free.
From an outside view this looks alright. From the inside, we all know that it's a lot spin on numbers.
It doesn't change our trajectory.
Enough free cash to end this eternal hiring freeze?
Me thinks there is some serious financial shenanigans going on.
SPIN IT STANKEY SPIN IT!
“We are doing great”! (As always, LOL)
What a joke!
While the music on the TITANIC is playing!