The carrier has used discounts and trade-in offers to lure customers into the highly competitive telecoms market as it ramps up competition with Verizon and T-Mobile US after shedding its media business last year.
With a strong 5 G wireless net adds and improved churn numbers, AT&T is entering a good position in the year 2023, according to Jamie Lumley, Third Bridge analyst.
The company is going to run out of room for growth in the near future, according to Lumley.
AT&T is investing in bolstering its fiber-optic network, which allows it to sell broadband services and video packages, as well as 5 G technology. In December, the company added 280,000 fiber customers.
A 25 cent charge related to non-cash pension costs and an expected higher tax rate were included in the forecast of adjusted earnings in the range of $2.35 and $2.45 per share. According to Refinitiv's data, analysts were expecting a profit of $2.56 per share.
Companies are turning cautious about growth and taking big steps to reduce costs, as the United States stares at a recession.
John Stankey, Chief Executive John Stankey, told analysts on a conference call that we don't have an outlook that says we've solved the economy problem.
We're operating in a challenging macroeconomic environment where wireless industry growth is likely to return to normalized levels. The number came in well above Verizon's 217,000 additions, although it didn't match T-Mobile's expected 927,000 additions.