AT&T stock surged after the telecommunications giant reported impressive fourth-quarter earnings for 2021. The company's strong performance can be attributed to a combination of factors, including solid growth in its wireless and broadband businesses, as well as successful cost-cutting initiatives.
AT&T reported revenue of $44.75 billion for the quarter, beating analysts' expectations of $43.4 billion. The company also posted earnings per share of $0.78, surpassing estimates of $0.76. The strong financial results were driven by a 7% increase in wireless service revenue, driven by strong subscriber growth and higher average revenue per user.
AT&T also reported a 20% increase in broadband revenue, as more customers signed up for its high-speed internet service. The company added 273,000 postpaid phone subscribers in the quarter, marking its best quarterly performance in several years. Additionally, AT&T's media division, which includes WarnerMedia, saw a 38% increase in revenue, driven by higher advertising and subscription revenue.
In addition to its strong revenue growth, AT&T also made significant progress in reducing its debt and improving its financial position. The company reduced its net debt by $14 billion in 2021, bringing its total debt load down to $169 billion. This debt reduction is part of AT&T's broader strategy to focus on its core telecommunications and media businesses, while divesting non-core assets to streamline its operations.
AT&T's impressive performance in the fourth quarter has boosted investor confidence in the company's ability to deliver sustained growth in the coming quarters. The company's stock price surged by 10% following the earnings report, reaching its highest level in over a year. Analysts are optimistic about AT&T's prospects for the future, citing its strong market position in wireless and broadband services, as well as its diversified media and entertainment offerings.
Looking ahead, AT&T is expected to continue investing in its 5G network and expanding its fiber internet service to more households. The company is also focused on growing its streaming business, with plans to launch a new ad-supported version of HBO Max later this year. Overall, AT&T's strong Q4 earnings report signals a positive outlook for the company, as it continues to execute its strategic initiatives and drive value for shareholders.