AT&T Outlines Strategy Pledging Over $40B in Buybacks, Dividends | Global News Avenue

American Telephone and Telegraph Company (time) on Tuesday outlined an ambitious strategic plan that promises to return more than $40 billion to shareholders through dividends and buybacks over the next three years, while forecasting free cash flow of more than $18 billion in 2027.

Shares of the telecoms giant rose about 3% in premarket trading after laying out a three-year plan that also includes boosting its earnings outlook, expanding its fiber-optic network that provides broadband internet and modernizing its 5G wireless network. The company said the expansion will result in “stronger shareholder returns.”

“Over the past four years, we have delivered sustained and profitable subscriber growth, generated attractive returns on network investments and strengthened our balance sheet,” AT&T said. Chief Executive Officer (CEO) John Stankey said. “Our plan will expand the nation’s largest fiber optic network to more than 50 million locations, modernize wireless networks and reward our shareholders.”

AT&T raises lower end of 2024 earnings forecast

AT&T says free cash flow, excluding funds raised from the company Sale Transfers remaining 70% stake in satellite provider DirecTV to private equity firm TPG (TPG), will exceed US$16 billion by 2025 and exceed US$18 billion by 2027. Under Stankey’s leadership, the company reduced its high debt levels and expanded its operations through the sale of DirecTV and spin off its WarnerMedia business a few years ago.

Company forecast adjustment for 2024 Earnings per share (EPS) $2.20 to $2.25, including funds raised from DirecTV shares SaleThis raises the lower end of the range to $2.25 from the previous $2.15.

The company said it still expects the sale of the DirecTV stake to close in mid-2025.

AT&T shares are up more than a third this year.