AT&T forecast annual profit below estimates

AT&T Inc has forecasted annual profit below Wall Street expectations.

AT&T is bracing for a slowdown in wireless customer growth amid rising competition as the economic recession pushes U.S. companies to streamline their operations.

AT&T said it was expecting earnings for 2023 in the range of $2.35 and $2.45 per share versus analysts’ estimates of $2.56 per share, according to Refinitiv data.

The U.S. carrier added 656,000 postpaid phone subscribers in the latest quarter, above estimates of 644,800 additions.

AT&T posted a loss from continuing operations of $23.1 billion, or $3.20 per share, in the fourth quarter, after taking a $25 billion impairment charge primarily due to rising interest rates and asset impairments.

The company earned 61 cents per share, above expectations of 57 cents per share profit. Its wireless service revenue growth for the year is expected to be 4% or higher.

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