AT&T Drops Nearly 4% After Warning of $90 Mln Hit to Q3 Revenue

AT&T (T) warned investors that its revenue will be $90 million lower and reported pre-tax earnings will be eroded by about $210 million, or $0.02 per diluted share in Q3 after several devastating hurricanes, as well as earthquakes in Mexico, significantly impacted certain service areas last quarter.

The hit to earnings will come from damage to its network and other property, costs to restore services, and revenue declines from waived charges, it said in a regulatory filing late Wednesday. It added it expects further reductions in Q4 as it has yet to assess the full extent of the damage to its network and fully restore service.

The company reiterated its full-year 2017 guidance of mid-single digit adjusted earnings growth, adjusted consolidated operating margin expansion, capital expenditures in the $22 billion range, and free cash flow at the low end of the $18 billion range.

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