AT&T lowers Q3 Guidance due to Natural Disasters

AT&T lowers Q3 Guidance due to Natural Disasters

Shares in AT&T Inc (NYSE:T) were lower in pre-market trading after the telecoms giant issued a profit warning on Wednesday evening.

The carrier still reiterated its full-year 2017 guidance for mid-single digit adjusted earnings growth, adjusted consolidated operating margin expansion, capex of about Dollars 22 billion, and free cash flow at the low end of the USD 18 billion range. "Damage to our network and other property, costs to restore services, and revenue declines from waived charges will decrease our reported third-quarter 2017 consolidated revenues almost $90 million and our reported pre-tax earnings about $210 million, or $0.02 per diluted share".

The company confirmed prior full-year targets of mid-single digit adjusted earnings growth, adjusted consolidated operating margin expansion, roughly $22 billion in capital expenditures, and free cash flow in the low $18 billion range.

It will decrease its consolidated revenues by almost $90 million and its pre-tax earnings about $210 million, or $0.02 per share.

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AT&T, which is still awaiting final approval on its $85 billion merger with Time Warner, said it will lose 390,000 traditional video subscribers but gain 300,000 on its over-the-top digital service. 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.

AT&T is expected to report third quarter earnings on October 24 after close.

AT&T attributed the lower total video adds to more intense competition in the traditional pay-TV markets and OTT services, severe storms that hit the country, and tighter credit standards.

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