AT&T’s Inc.’s (NYSE: T) shares fell on Thursday after a filing stating that third quarter earnings will be negatively impacted due to the natural disasters as well loss of video subscribers. AT&T shares were down over 4 percent on Thursday during trading hours.
In the filing, AT&T reiterated its third quarter guidance and lowered it from previously. The company estimates capital expenditures in the $22 billion range, and free cash flow at the low end of the $18 billion range.
AT&T also stated that the damage to its network, properties, restoring services, and revenue clines from waived charges will negatively impact its third quarter.
It will decrease its consolidated revenues by nearly $90 million and its pre-tax earnings about $210 million, or $0.02 per share.
Along with the damages by the hurricane, AT&T also expects a loss of subscribers in the quarter. AT&T, which is the number two U.S. wireless carrier and also owner of DirecTV, said in the filing that it had lost 90,000 U.S. video subscribers, now at 300,000 subscribers. The company said that it saw a loss of subscribers due to competitors’ pricing.
AT&T is expected to report third quarter earnings on October 24 after close.