AT&T rises 5% pre-market after Q2 revenue hits $31.6 billion

AT&T reported second-quarter revenue of $31.6 billion, up 2.3 percent from a year earlier, and adjusted earnings per share of 65 cents, topping Wall Street expectations and sending shares up about 5 percent in pre-market trading.

"Our continued focus on network investment and customer growth drove solid financial results this quarter," John Stankey, chief executive officer at AT&T, said in a statement.

Revenue of $31.6 billion compared with $30.9 billion in the same period last year. Adjusted EPS of 65 cents rose from 54 cents a year earlier, a gain of 20 percent. The company did not disclose specific consensus estimates alongside the release.

The results mark the Dallas-based telecom giant's second consecutive quarter of year-over-year revenue growth, following a period of restructuring that included the separation of its WarnerMedia assets. AT&T has focused on its core telecommunications business, investing in fiber broadband and 5G network expansion.

The 5 percent pre-market move pushed the stock toward its highest level in recent months. AT&T's fiber broadband segment has been a key growth driver, with the company adding more than 300,000 fiber subscribers in the first quarter. The company is scheduled to hold its earnings call later Tuesday morning, where management is expected to discuss second-half guidance and capital expenditure plans.

The earnings beat signals that AT&T's strategy of simplifying its business and focusing on connectivity is gaining traction. Investors will watch the earnings call for updates on free cash flow targets and the company's debt reduction timeline, both of which are closely tracked by telecom analysts.

This article is for informational purposes only and does not constitute investment advice.