US telecommunications giant AT & T lowered its full-year cash flow forecast by about $ 2 billion on the 21st of July, saying that payments for some subscribers have been delayed. As a result, the stock price temporarily fell by about 11%.
With inflation rising to its highest level in 40 years, companies are cautious about the outlook for business performance in anticipation of sluggish consumer spending in the future.
Telecommunications companies are raising prices to deal with high input costs. AT & T also raised the price of some plans in June.
The company has now lowered its full-year free cash flow forecast from its previous forecast of about $ 16 billion to about $ 14 billion.
As a result, the stock prices of Verizon Communications and T-Mobile, which are in the same industry, also fell.
Earnings for the April-June quarter announced today were $ 29.6 billion, almost in line with market expectations ($ 29.55 billion).
Profit per share, excluding one-time items, was $ 0.65, higher than expected at $ 0.61.
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