AT&T reported Q3 2024 revenue of USD 30.21 billion with modest year-over-year erosion and a solid sequential uptick, underscoring continued scale and operational activity in a competitive telecom landscape. Despite positive pre-tax earnings of USD 1.43 billion, the quarter delivered a net loss of USD 0.174 billion driven by sizable non-operating items, as reflected in total other income/expenses net of USD -5.147 billion. EBITDA stood at USD 8.178 billion, with an EBITDA margin of approximately 27.1%, signaling ongoing operating efficiency even as the business bears high fixed costs and heavy depreciation.
The company generated substantial operating cash flow (USD 10.235 billion) and free cash flow of USD 4.933 billion, supported by capital expenditures of USD 5.302 billion. This cash-generating capability underpins voluntary deleveraging and dividend sustainability, though leverage remains elevated with net debt around USD 143.76 billion and a debt-to-capitalization ratio of 0.588. Liquidity metrics show a subdued liquidity position (cash and cash equivalents of USD 2.59 billion and current ratio of 0.73), highlighting ongoing liquidity management challenges in a capital-intensive industry. Management commentary (where available) is not present in the supplied transcript data; this analysis relies on reported results and KPI evolution.
Overall, the QQ3 2024 result mix suggests a company with strong cash generation and an appetite for debt reduction, but with profitability under pressure from non-operating items and a high cost base. The near-term investment thesis hinges on deleveraging progress, sustaining the dividend through stable FCF, and improving operating leverage to convert scale into sustained profitability.
Key Performance Indicators
Revenue
Decreasing
30.21B
QoQ: 1.40% | YoY: -0.45%
Gross Profit
Decreasing
13.50B
44.67% margin
QoQ: 1.60% | YoY: -26.24%
Operating Income
Increasing
6.58B
QoQ: 4.50% | YoY: 13.75%
Net Income
Decreasing
-174.00M
QoQ: -104.84% | YoY: -104.98%
EPS
Decreasing
-0.03
QoQ: -106.41% | YoY: -106.54%
Revenue Trend
Margin Analysis
Financial Highlights
- Revenue: USD 30.213 billion; YoY change: -0.45%; QoQ change: +1.40%.
- Gross Profit: USD 13.496 billion; YoY change: -26.24%; QoQ change: +1.60%; Gross margin approx. 44.7% (based on revenue and gross profit figures).
- Operating Income: USD 6.578 billion; YoY change: +13.75%; QoQ change: +4.50%.
- EBITDA: USD 8.178 billion; EBITDA margin ≈ 27.1%.
- Net Income: USD -0.174 billion; YoY change: -104.98%; QoQ change: -104.84% (net loss despite positive pre-tax income).
- Earnings Per Share (diluted): USD -0.0314; YoY change: -106.54%; QoQ change: -106.41%.
- Pre-tax income: USD 1.430 billion; Tax expense: USD 1.285 billion; Net income attributable to shareholders reflects significant non-operating headwinds.
- Cash flow from operations: USD 10.235 billion; Capital expenditures: USD 5.302 billion; Free cash flow: USD 4.933 billion.
- Balance sheet highlights: Total assets USD 393.719 billion; Total debt USD 146.343 billion; Net debt USD 143.757 billion; Cash and cash equivalents USD 2.586 billion; Total stockholders’ equity USD 102.351 billion.
- Liquidity and solvency: Current ratio 0.733; Quick ratio 0.671; Interest coverage 1.263x; Debt to capitalization 0.588; Long-term debt to capitalization 0.553; Cash flow to debt ratio 0.0699.
- Dividend and payout: Dividend payout ratio reported as -11.71% (reflecting positive cash dividend flow despite negative net income); Dividend yield approx. 1.29%.
- Market multiples (as implied by ratios): Price-to-Book ~1.55x; Price-to-Operating Cash Flows ~15.48x; EV/EBITDA ~36.96x; Free cash flow yield and other liquidity metrics should be monitored against debt levels and capex trajectory.
- YoY/QoQ context: Revenue and operating income show improving QoQ momentum despite flat-to-down YoY revenue; net income deterioration YoY is largely a function of non-operating items and the company’s capital structure, not necessarily a quick read-through on core cash-generating activities.
Notes: The provided data include a comprehensive set of quarterly inputs, but the earnings transcript was not supplied. Consequently, transcript-based quotes and nuanced management commentary could not be integrated; future updates with the transcript would enable richer theme-based synthesis and quotes.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
30.21B
-0.45%
1.40%
Gross Profit
13.50B
-26.24%
1.60%
Operating Income
6.58B
13.75%
4.50%
Net Income
-174.00M
-104.98%
-104.84%
EPS
-0.03
-106.54%
-106.41%
Key Financial Ratios
Gross Profit Margin
Excellent
61.50%
Gross profit margin is exceptional, indicating strong pricing power and operational efficiency
Operating Profit Margin
Fair
7.00%
Operating margin is moderate, room for improvement in cost management
Net Profit Margin
Weak
-0.01%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
0.00%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
0.00%
Return on equity suggests inefficient capital allocation
Current Ratio
Concern
0.73
Current ratio below safe levels, potential liquidity risk
Debt to Equity
High Risk
1.43
Debt-to-equity indicates high leverage and elevated financial risk
P/E Ratio
Negative
-227.65x
Negative earnings make P/E ratio not meaningful
Price to Book
Fair Value
1.55x
Price-to-book ratio reasonable for profitable companies
Management Insights Available for Members
Get exclusive access to management commentary, earnings call quotes, and forward guidance from company leadership.