AT&T offered an updated financial forecast Friday that accounts for the pending close of the WarnerMedia-Discovery deal. T stock closed unchanged though it traded up for most of Friday, while the Nasdaq fell again.
At an investor day, AT&T projected 6% growth in earnings before interest, taxes, depreciation and amortization, known as EBITDA, for T stock in 2023. That would be up from estimated 3% EBITDA growth the company sees for the current 2022 fiscal year, which ends in December.
AT&T predicted adjusted EBITDA in a range of $43.5 billion to $44.5 billion in 2023, up from a range of $41 billion to $42 billion in 2022.
As expected, AT&T outlined plans to invest in 5G wireless networks and fiber-optic broadband connections to homes. In 2022, AT&T expects capital spending to rise about 19% to $24 billion. It projected the same amount of capital spending in 2023.
T Stock Dividend To Fall
T stock closed unchanged at 23.19 on the stock market today. Further, the company reiterated much of its previous revenue and earnings forecasts for 2022 and 2023.
Shares have declined nearly 6% in 2022.
AT&T stock fell in February after it announced plans to spin off WarnerMedia to shareholders as a precursor to its merger with Discovery. As a result of the deal, the annual dividend of T stock will fall by about 46% to $1.11 per share.
Also, the new media company will become Warner Brothers Discovery and trade under the ticker symbol WBD. AT&T shareholders will own 71% of the new media company.
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Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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