American telecommunications company AT&T saw its shares slide down as much as 11% on Thursday. The drop, which sent AT&T stock as low as $18.35, was the biggest slide the company has seen since 2002.
The reason for AT&T shares being on a downward trajectory is the recent adjustment of the annual free cash flow forecast. The company now forecasts that it will have a free cash flow of $14 billion in 2022, which is $2 billion less than the previously predicted $16 billion.
AT&T’s adjusted expectations are a result of the fact that some of its customers are paying their bills with delays.
“We view this cycle no differently and still expect customers will pay their bills albeit a little less timely,” AT&T’s Chief Executive John Stankey said in a statement.
AT&T also saw some positives in their Q2 report, announcing the addition of 813,000 regular monthly phone subscribers and more than 300,000 AT&T Fiber net additions. It made good on expectations as well, reporting $29.6 billion revenue and 65 cents a share earnings compared to $29.5 billion revenue and 62 cents a share expected. Finally, the company is predicting a full-year wireless service revenue growth of 5% compared to the expected 3%, thanks to recent price hikes.