AT&T released its earnings report for the first quarter on Thursday, reporting a lower-than-expected cash flow of $1 billion for the period. Wall Street analysts expected a free cash flow of $3.02 billion.
While the company stated that it remains on track to achieving its full-year cash flow targets, this proves a challenging milestone for the Dallas, Texas-based telecommunications company to achieve, given that it has only 6% of the way to achieving this goal.
Shares in the company fell by about 2.5% to $19.20 in premarket trading on Thursday. Despite this fall, the company’s stocks remain 7% higher for the year to date.
Despite missing out on its cash flow target, AT&T succeeded in adding more net subscribers during the first quarter. 424,000 regular monthly phone subscribers were added, exceeding the estimated 400,556 that analysts predicted.
23,000 broadband customers were lost, however, 272,000 new fiber subscribers were gained in the period. AT&T confirmed that its fiber services remain on track to reach 30 million homes and businesses by 2025.