It's Time to Buy AT&T Stock Hand Over Fist

Telecom giant AT (NYSE: T) slightly missed expectations for revenue and earnings when it reported its first-quarter results on Wednesday, but those headline figures don't tell the whole story. AT continued to win new wireless subscribers while keeping churn AT record-low levels, and its broadband business impressed.

AT produced $3.1 billion in free cash flow during Q1, and it maintained its guidance calling for between $17 billion and $18 billion in free cash flow for the full year. With the stock trading for less than 7 times the midpoint of that range, investors are getting an incredible bargain.

While overall mobility revenue was flat in the first quarter, a drop in equipment revenue was entirely to blame. Mobility services revenue jumped 3.3% year over year, driven by AT's solid subscriber gains and rising revenue per user.

Continue reading

Source Fool.com