AT&T's Fiber Business to Drive EPS Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Should l Buy T?
Source: Yahoo Finance
- Fiber Expansion: AT&T plans to increase its fiber service coverage from 32 million to 40 million customer locations by the end of 2026, representing a 25% year-over-year growth that will significantly enhance its market share and competitive position.
- Customer Growth Potential: The addition of 8 million new users is expected to boost AT&T's fiber customer base from 10.6 million to 13.6 million, translating to a 30% increase that could generate nearly $3 billion in annual revenue, alleviating pressures from a saturated wireless market.
- Earnings Outlook Improvement: The CFO projects adjusted EPS to range between $2.25 and $2.35 in 2026, with a double-digit CAGR expected over the next three years, indicating growth potential even in a highly competitive market.
- Dividend Payment Capacity Enhancement: With improving profits, AT&T's dividend payout ratio is slightly above 50%, which may allow for the resumption of annual dividend increases that were suspended in 2022, attracting more income-focused investors.
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Analyst Views on T
Wall Street analysts forecast T stock price to fall
15 Analyst Rating
8 Buy
5 Hold
2 Sell
Moderate Buy
Current: 28.800
Low
20.00
Averages
28.27
High
33.00
Current: 28.800
Low
20.00
Averages
28.27
High
33.00
About T
AT&T Inc. is a holding company. The Company is a provider of telecommunications and technology services globally. The Company’s segments include Communications and Latin America. The Communications segment provides wireless and wireline telecom and broadband services to consumers located in the United States and businesses globally. The business units of the Communication segment include Mobility, Business Wireline, and Consumer Wireline. Mobility provides nationwide wireless service and equipment. Business Wireline provides advanced Ethernet-based fiber services, Internet Protocol (IP) Voice and managed professional services, as well as legacy voice and data services and related equipment, to business customers. Consumer Wireline provides broadband services, including fiber connections. Consumer Wireline provides legacy telephony voice communication services. The Latin America segment provides wireless services and equipment in Mexico.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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