AT&T Inc (T) has reported 11.16 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $3,328 million, or $0.54 a share in the quarter, compared with $2,994 million, or $0.50 a share for the same period last year. On an adjusted basis, profit per share for the quarter was stable at $0.74, when compared with the last year period. Revenue during the quarter grew 4.60 percent to $40,890 million from $39,091 million in the previous year period. Gross margin for the quarter contracted 67 basis points over the previous year period to 53.80 percent. Total expenses were 84.33 percent of quarterly revenues, down from 84.85 percent for the same period last year. This has led to an improvement of 52 basis points in operating margin to 15.67 percent.
Operating income for the quarter was $6,408 million, compared with $5,923 million in the previous year period.
However, the adjusted operating income for the quarter stood at $8,292 million compared to $7,947 million in the prior year period. At the same time, adjusted operating margin contracted 5 basis points in the quarter to 20.28 percent from 20.33 percent in the last year period.
Operating cash flow improves
AT&T Inc has generated cash of $29,202 million from operating activities during the nine month period, up 9.39 percent or $2,507 million, when compared with the last year period. The company has spent $18,189 million cash to meet investing activities during the nine month period as against cash outgo of $43,047 million in the last year period.
The company has spent $10,239 million cash to carry out financing activities during the nine month period as against cash inflow of $13,951 million in the last year period.
Cash and cash equivalents stood at $5,895 million as on Sep. 30, 2016, down 4.95 percent or $307 million from $6,202 million on Sep. 30, 2015.
Working capital remains negativeWorking capital of AT&T Inc was negative $9,728 million on Sep. 30, 2016 compared with negative $12,987 million on Sep. 30, 2015. Current ratio was at 0.79 as on Sep. 30, 2016, up from 0.73 on Sep. 30, 2015.
Days sales outstanding were almost stable at 35 days for the quarter, when compared with the last year period.
Debt comes down marginally
AT&T Inc has recorded a decline in total debt over the last one year. It stood at $125,221 million as on Sep. 30, 2016, down 1.35 percent or $1,709 million from $126,930 million on Sep. 30, 2015. Total debt was 31.07 percent of total assets as on Sep. 30, 2016, compared with 31.73 percent on Sep. 30, 2015. Debt to equity ratio was at 1 as on Sep. 30, 2016, down from 1.03 as on Sep. 30, 2015. Interest coverage ratio improved to 5.24 for the quarter from 5.17 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
