AT&T (NYSE:T) said Tuesday it increased its full-year 2014 sales growth guidance to be in the 5% range, while reaffirming its expectations for consolidated margins and EPS growth.
The telecommunications giant said it expects EPS growth to come in at the low-end of the mid-single digit range, with capital expenditures totaling around $21 billion dollars and free cash flow of $11 billion.
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AT&T said the updated guidance comes due in part to recent trends including its AT&T Next and Mobile Share Value plans, which it says are helping to drive a shift to higher equipment revenues and lower service revenues. The company said it also expects continued growth in business high-speed broadband, though wireline margins continue to come under pressure resulting from higher costs, fiber expansion and high-speed broadband subscriber growth.
The telecommunications company also said its Project VIP network transformation plan, which it announced in 2012, is progressing ahead of schedule and now offers coverage to nearly 290 million people with expectations to add more than 400,000 new business customer locations in the second quarter.