$T is having a killer month, being up over 7% while $SPY is trading flat.

The jump in price over the last two days is coming in response to the CFOs presentation at the Bank of America Media, Communications, and Entertainment Conference yesterday.

There were two highlights.

One was that the CFO touched on lead cables issue that the Wall Street Journal wrote about in July. He reaffirmed that subject sites have been tested by multiple parties and have not resulted in problematic readings. This is a good defense against any potential litigations that may occur.

Second was that the CFO reaffirmed the companies $16B free cash flow guidance for the year. In the first half of the year, $T has only brought in $5B in FCF this year per their Q2 report.

The CFO is expecting $4.5-$5B FCF in the next quarter, which means roughly $6B FCF will need to be achieved in Q4. His language seemed confident that this could be achieved, and analysts seem to expect the same as the average FCF estimate is $16.24B.

We shall see if they can deliver!