AT&T Shares Rise After CFO Says He’s Confident in Outlook

Shares of AT&T (T) advanced 3% on Thursday after the telecom giant’s CFO said he was confident of the company’s outlook.

AT&T CFO Pascal Desroches told an investor conference that AT&T anticipates third quarter free cash flow of between $4.5 billion and $5.0 billion, the first time it’s given guidance on 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 next year should get a boost as capital expenditures moderate following the company’s investment of billions of dollars this year to expand its 5G and fiber-optic networks. 

Desroches also said that AT&T is working with the Environmental Protection Agency (EPA) to investigate any potential environmental impacts from its legacy lead-sheathed cables in Lake Tahoe and the Detroit area. He reaffirmed comments from CEO John Stankey at a conference last week and an earlier statement from the company that AT&T doesn’t believe the cables pose a public health threat. Shares had tumbled following a July report about those cables.

Despite Thursday’s gains, AT&T shares were down over 18% for 2023.