Is AT&T (T) Stock a Buy?

AT&T reported earnings today and although they beat expectations, the stock is trading down over 2% so far. The company was light on revenues compared to 2019 but did report free cash flow for the year of $27.5 billion, slightly below the $29 billion reported in 2019. However, on a promising note to some, the company did put their cash flow to good use. For starters, they reduced their debt maturities over the next 5 years by about 50% and lowered their weighted average interest rate on debt to only 4%. On the conference call, CEO John Stankey articulated three priorities for the year. First, they are looking to grow their direct customer relationships, second, to transform their operations to be more effective and efficient, and third, and most importantly, to use their free cash flow after dividends to pay down debt. On the negative side, the company did not increase their dividend as some had hoped, but did commit to maintaining it. Since I have