AT&T, which is getting set to report third-quarter earnings on Oct. 24, warned Wall Street its results took a significant hit from hurricanes and the earthquake in Mexico. And, oh, by the way, they added: 90,000 video subscribers disappeared in the period for reasons having nothing to do with natural disasters.
The earthquake and the series of hurricanes that hit various parts of the U.S. shaved about $90 million off revenue in the period and dinged pre-tax earnings by about $210 million, or 2 cents a share.
“Several devastating hurricanes, as well as earthquakes in Mexico, significantly impacted certain regions of our service area during the third quarter,” the company said. “We expect further reductions in the fourth quarter as we continue to assess damage to our network and fully restore service.”
The telecom giant, which is about to finalize its $85 billion acquisition of Time Warner, also blamed the subscriber losses on the natural disasters, but said some of it was competition as skinny bundles and new pay-TV schemes proliferate.
Despite the short-term blemishes, the company said its full-year forecast of $22 billion in capital expenditures and mid-single-digit growth in adjusted earnings remains valid.
Shares fell a bit less than 1% on average volume to close at $38.19, in the middle of its 52-week range.