Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

AT&T Inc. (T - Analyst Report) provided data on subscriber addition for the second quarter of 2013. The update is encouraging with solid growth in U-verse broadband and TV subscription. Further, the company also projected net addition of approximately 500,000 in its post-paid wireless services. Moreover, management continues to expect full-year revenue growth of over 2%.

The company stated that it is experiencing a surge in its wireless business, in particular the post-paid segment, from promotional strategies that it had undertaken. These initiatives have resulted into increased smartphone upgrades along with higher sales from customer additions.

Further, AT&T also highlighted the increase in its liquidity position through proceeds received from YP Holdings LLC distribution, in which it holds minority interest, and by divesting 7% of its stake in America Movil (AMX - Analyst Report).

It was also reported that during the second quarter, AT&T completed its second 300 million-share repurchase authorization. The company also plans to begin a new share repurchase program of 300 million shares approved early this year. Complete details on the company’s financial performance for the ongoing quarter will be released after the closing bell on Jul 23.

In the coming days, we expect AT&T to significantly benefit from its Project Velocity IP. Under this project, AT&T will invest $14 billion in the coming three years to considerably expand the wireless (investment of $8 billion) and wireline (investment of $6 billion) Internet Protocol (IP) broadband networks.

The company targets to extend wireline IP network to nearly 57 million customer locations (including both customers and small businesses) – covering 75% of AT&T’s wireline service area – by the end of 2015. This project underlines the company’s efforts to meet the growing demand for high-speed Internet. We believe that this investment program will provide AT&T with a high-potential growth platform, leading to higher revenues and improved earnings per share over the near term.

AT&T, currently has Zacks Rank #3 (Hold)

Other Stocks

Telefonica Brasil, S.A. (VIV - Analyst Report) and TELUS Corporation (TU - Analyst Report) with Zacks Rank #2 (Buy) are the two stocks we believe are worth considering in the telecom sector.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
BITAUTO HOLD BITA 35.33 +14.82%
ANI PHARMACE ANIP 24.79 +14.66%
E HOUSECHINA EJ 10.99 +9.24%
CANADIAN SOL CSIQ 26.97 +7.15%
INTERNATIONA ICAGY 33.30 +5.38%