Shares of AT&T fell on Thursday after CEO John Stankey said that customers are starting to put off paying their phone bills – which resulted in the wireless carrier cutting this year’s forecast for free cash flow by $2 billion, Bloomberg reports. Shares fell as much as 11% in early trading, the company’s largest slide since 2022 which erased the stock’s YTD gains. A weakened consumer adds to pressure facing AT&T, which has already taken hits from deeply discounting new phones and capital outlay on network equipment. The company now expects 2022 free cash flow of $14 billion – with around $1 billion of the reduced amount tied to the «timing of customer collections».

Earnings, excluding some items, topped estimates at 65 cents a share, while analysts were looking for 62 cents. Revenue in the quarter met estimates at $29.6 billion. Even so, those price hikes aren’t fully covering costs, Chief Executive Officer John Stankey told analysts on AT&T’s earnings call. Stankey warned that he expects higher bad debt and slower payments to continue, and that while customers are eventually paying their bills, they’re «less timely».

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Source: TYLER DURDEN | ZEROHEDGE.COM