AT&T Set to Release Earnings: What Investors Should Know
The Telecom Giant Faces Mixed Projections Ahead of Q4 Earnings Announcement
With a market capitalization of $162.7 billion, AT&T Inc. (T) stands as a prominent player in telecommunications and technology services. The Dallas-based company provides a variety of communication and business solutions, including wireless, local exchange, long-distance, data/broadband and Internet, video, managed networking, wholesale, and cloud-based services. Investors are keenly awaiting the fiscal Q4 earnings results, scheduled for release before the market opens on Monday, January 27.
Analysts estimate AT&T will report a profit of $0.48 per share, reflecting an 11.1% decline from $0.54 per share in the same quarter last year. Over the last four quarters, AT&T has exceeded Wall Street’s earnings expectations in two instances while falling short in the other two. In the most recent quarter, its adjusted earnings per share exceeded projections by 1.7%.
Looking ahead to fiscal 2024, analysts forecast an EPS of $2.20, marking an 8.7% drop from the $2.41 reported in fiscal 2023.
Over the past year, AT&T shares have surged 31.6%, outperforming the S&P 500 Index’s ($SPX) increase of 26.3% yet trailing behind the Communication Services Select Sector SPDR ETF Fund’s (XLC) 36% gain in the same period.
Following its Q3 earnings release on October 23, AT&T shares jumped 4.6%. The company reported adjusted earnings of 60 cents per share, surpassing analysts’ expectations. Notably, AT&T experienced robust subscriber growth, adding 429,000 post-paid net additions, which included 403,000 postpaid wireless phone additions. The company also generated $5.1 billion in free cash flow, indicating a solid financial foundation. Furthermore, the reaffirmed guidance for 2024, predicting a 3% increase in wireless service revenues and a 7% growth in broadband revenues, has strengthened investor confidence.
Overall, analysts express moderate optimism about AT&T’s stock, with a “Moderate Buy” rating. Among 27 analysts covering the company, 14 recommend a “Strong Buy,” two suggest “Moderate Buy,” 10 indicate “Hold,” and one recommends a “Strong Sell.” This outlook has improved compared to three months ago when only 12 analysts rated it as a “Strong Buy.”
The average analyst price target for T is $26.10, suggesting a modest 15.1% potential upside from current levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the
securities mentioned in this article. All information and data in this article is solely for informational purposes.
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