AT&T Earnings Preview: Focus on Subscriber Growth and Margin Risks
Written by Emily J. Thompson, Senior Investment Analyst
Source: seekingalpha
- Earnings Expectations: AT&T is expected to report an EPS of $0.47 and revenue of $32.88 billion, reflecting nearly a 2% growth from the previous quarter, indicating success in attracting more users through aggressive promotions around the new iPhone launch.
- Subscriber Growth: Although AT&T added more wireless subscribers than anticipated in October, its stock has fallen over 8% since the third-quarter results due to in-line profit and revenue misses, highlighting market concerns about its profitability.
- Margin Risks: Analysts note that a decline in AT&T's gross margin could significantly impact EPS in 2025, making the ARPU gross margin dynamic crucial in the upcoming report, which investors will closely monitor.
- Market Sentiment: Despite multiple upward revisions in EPS and revenue estimates, the market remains cautious about AT&T's future performance, especially in light of Verizon's challenges with subscriber losses in its consumer business.
Analyst Views on T
Wall Street analysts forecast T stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for T is 28.27 USD with a low forecast of 20.00 USD and a high forecast of 33.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
8 Buy
5 Hold
2 Sell
Moderate Buy
Current: 23.450
Low
20.00
Averages
28.27
High
33.00
Current: 23.450
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.
