(RTTNews) - AT&T (T) provided pro forma 2022 and 2023 guidance for standalone company, reiterated guidance for $20 billion range in free cash flow in 2023.
For 2022, the company projects adjusted earnings per share in the range of $2.42 to $2.46, compared to $2.41 on a pro forma basis in 2021. Analysts polled by Thomson Reuters expect the company to report earnings of $3.13 per share for fiscal year 2022. Analysts' estimates typically exclude special items.
The company expects a low single-digit total revenue growth in 2022, up from $118.2 billion on a pro forma basis in 2021, driven by 3% or better growth in wireless service revenues and 6% or better growth in broadband revenues.
Looking ahead for 2023, the company expects adjusted earnings per share to be between $2.50 and $2.60. Analysts expect annual earnings of $3.22 per share.
The company projects continued low single-digit revenue growth in 2023, driven by low single-digit growth in wireless service revenues and a ramp in broadband revenue growth to the mid to high single-digit range.
AT&T plans to double its fiber footprint to 30-plus million locations, including increasing its business customer locations by 2x to 5 million. In doing so, the company expects to add 3.5 million to 4 million customer locations each year. The company also expects to enhance the nation's best and most reliable 5G network by deploying 120 MHz of mid-band spectrum to cover more than 200 million people by the end of 2023.
AT&T will also continue to pursue its transformation initiatives and sees significant opportunities to optimize its cost structure. By the end of 2023, the company expects to reach $6 billion in run-rate cost savings.
AT&T will ramp investment to deploy fiber and 5G and drive sustainable earnings growth. In 2022, AT&T expects capital investment in the $24 billion range. The company expects 2023 capital investment to be similar to 2022 levels and then to begin to taper to the $20 billion range starting in 2024.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
