AT&T climbs after releasing a 3-year plan to meet activist firm Elliott Managements goals - Business Insider

AT&T shares jumped as much as 4% early Monday after the telecom giant released a three-year plan to accomplish many goals set out by activist firm Elliott Management.The plan calls for the separation of AT&T's CEO and chairman roles, a pause on major acquisitions, and the addition of two new directors.AT&T also forecasted earnings per share between $4.50 and $4.80 by 2022, trouncing the consensus analyst estimate of $3.39 per share.Elliott praised the plan and said it worked closely with the telecom company to create the initiative.Watch AT&T trade live here.AT&T shares rose as much as 4% in early Monday trading after the company released a three-year plan to accomplish many of the goals set out by activist investment firm Elliott Management.The company's plan calls for the separation of its chairman and CEO positions, a pause to major acquisitions, and the addition of two new directors. The telecom giant forecasted earnings per share of $4.50 to $4.80 by 2022, compared to analysts estimates of $3.39 per share by that year.The plan won approval from activist firm Elliott Management, which took a $3.2 billion stake in AT&T in early September. The firm said then that AT&T has a “compelling value-creation opportunity,” and that the company should overhaul its strategy to focus on its core business over acquisitions.Elliott praised the three-year plan and said it worked “closely and collaboratively” with company leadership on the initiative.“We commend AT&T for the positive steps announced today, which will create substantial and enduring shareholder value at one of America's greatest companies,” Elliott partner Jesse Cohn and portfolio manager Marc Steinberg said of the new plan. “It is clear to us that AT&T is committed to and accountable for creating shareholder value over the near- and long-term.”AT&T will separate its chairman and chief executive positions after CEO Randall Stephenson leaves the company in 2020. The plan to stop major acquisitions follows AT&T's massive merger with Time Warner and 2014 acquisition of DirecTV. The telecom company also announced third-quarter financial results Monday morning, missing estimates for quarterly revenue and just beating expectations for earnings per share. The company also lost 217,000 monthly wireless subscribers, far more than the 60,000 loss expected by analysts.AT&T closed at $36.91 per share Friday, up about 29% year-to-date.The company has 16 “buy” ratings, 16 “hold” ratings, and one “sell” rating from analysts, with a consensus price target of $36.60, according to Bloomberg data.Now read more markets coverage from Markets Insider and Business Insider:Tech giants, Warren Buffett's empire, and the 'Generals': Here's what to look for when these 6 companies report earnings this weekMicrosoft is set for a record open after beating Amazon to a controversial Pentagon contract worth $10 billionWEALTH MANAGEMENT INNOVATORS: Meet 7 people shaking up recruiting, tech, and education in the $49 trillion business of managing money

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