01:52 PM EST, 12/03/2024 (MT Newswires) -- AT&T ( T ) on Tuesday outlined its long-term outlook, including returning more than $40 billion to shareholders and expanding its fiber network to more than 50 million locations in the US.

The telecommunications giant said it plans shareholder returns in the form of dividends and stock repurchases over the next three years, including an initial $10 billion buyback authorization that is expected to complete by the end of 2026. AT&T ( T ) expects to maintain its current annualized dividend of $1.11 a share.

The company intends to grow its national fiber network to more than 50 million locations by the end of 2029. This includes roughly 45 million locations through its organic fiber deployment and the rest via its Gigapower joint venture with Blackrock ( BLK ) , as well as through deals with commercial open-access providers.

"Over the last four years, we've achieved durable and profitable subscriber growth, generated attractive returns on network investment, and strengthened our balance sheet," AT&T ( T ) Chief Executive John Stankey said in a statement.

The company's shares were up 3.2% in Tuesday afternoon trade. The stock has gained about 40% in value so far this year.

Under its plan, the company expects nearly $10 billion in incremental financial flexibility for potential growth investments and other purposes. AT&T ( T ) said it's working to exit its legacy copper network operations across "the large majority" of its wireline footprint by the end of 2029.

For 2025, the company expects adjusted earnings of $1.97 to $2.07 a share, excluding DirecTV, accelerating to double-digit percentage growth in 2027. From 2025-2027, AT&T ( T ) is targeting annual adjusted earnings before interest, taxes, depreciation, and amortization growth of 3% or better, and consolidated service revenue growth in the low-single-digit range. Capital investment is pegged in the $22 billion range annually over the period.

For 2024, the company now expects adjusted EPS of $2.20 to $2.25, raising the lower end of its prior range from $2.15. Analysts polled by FactSet are looking for $2.21. Full-year capital investment is seen at the high-end of its $21 billion to $22 billion range.

AT&T ( T ) said it continues to expect the sale of its 70% stake in DirecTV to TPG to close in the middle of next year. It expects 2025 free cash flow of more than $16 billion, excluding DirecTV, with annual growth of about $1 billion, leading to free cash flow of more than $18 billion in 2027.

Last month, AT&T ( T ) agreed to acquire some of US Cellular's (USM) spectrum licenses for about $1.02 billion in cash.

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