Where Will AT&T Be in 1 Year?
AT&T (NYSE: T) should remain one of the three telecom leaders in the U.S. for the foreseeable future thanks to the deployment of its 5G and fiber infrastructures. The telecom and entertainment giant is also aiming to offset the decline of its legacy cable TV business with its video-streaming platform, HBO Max.
And because of its significant debt load, AT&T needs strong free cash flow to fund its transformation, reduce its debt, and pay its dividend. But the company's first-quarter results indicate the COVID-19 pandemic represents a significant extra challenge. So, where will AT&T be in one year if that precious free cash flow won't meet management's previous expectations?
AT&T's first-quarter revenue dropped by 4.6% year over year to $42.8 billion, and non-GAAP (adjusted) operating income decreased by 5.7% to $9.1 billion.
Source Fool.com
