03:43 PM EDT, 09/30/2024 (MT Newswires) -- AT&T's ( T ) 3Q overall revenue will be slightly down due to lower equipment revenue and shifts in free cash flow timing in H2 due to working capital adjustments, RBC Capital markets said in a note emailed Monday.

RBC trimmed revenue estimates to $30.4 billion, compared with consensus of $30.5 billion and estimates for equipment revenue to $4.7 billion, but kept its EBITDA and FCF estimates largely the same at $44.8 billion and $17.4 billion, respectively.

For Q3 RBC expects 3.4% wireless revenue growth year over year, driven by 2.5% postpaid subscriber growth and a 1% average revenue per unit increase, with 450,000 postpaid phone net additions, 90,000 broadband/DSL net additions, 6.7% broadband revenue growth, and increased focus on bundled 20% retail discount.

RBC raised its price target to $22 from $19 for AT&T ( T ) with a a sector perform rating.

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