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AT&T (T) to Play Santa Early with 5G Device Launch in U.S.
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AT&T Inc. (T - Free Report) recently announced that it will offer 5G devices over commercial mobile 5G network starting Dec 21, 2018 to provide customers the first taste of the future of connectivity. With this, the company is reportedly going to be the first U.S. carrier to offer 5G devices to consumers.
The upcoming 5G era is expected to unlock various use cases that depend on faster speed, wide coverage and low latency. AT&T has worked together with its technology suppliers to achieve this initial launch milestone.
The company’s 5G service entails utilization of millimeter wave spectrum for deployment in dense pockets while in suburban and rural areas, it intends to deploy 5G on mid- and low-band spectrum holdings. Such a radical change in wireless technology will help to create new economic opportunities and better experiences for consumers, and businesses serving customers across industries.
The company believes that as the 5G ecosystem evolves, customers can experience significant enhancements in coverage, speeds and devices. The telco giant earlier announced that it has introduced mobile 5G networks in parts of 12 cities — Houston, Jacksonville, Louisville, New Orleans, San Antonio, Atlanta, Charlotte, Dallas, Indianapolis, Oklahoma City, Raleigh and Waco.
The company is also planning to bring mobile 5G in certain areas of seven more cities — Las Vegas, Los Angeles, Nashville, Orlando, San Diego, San Francisco and San Jose — in the first half of 2019. The company aims to deliver select businesses and consumers its first mobile 5G device plus 5G data usage at no cost for at least 90 days.
AT&T remains focused on managing its debt portfolio and is well on track to achieve its set target of 2.5x debt-to-EBITDA range by year-end 2019. It is also ramping up its FirstNet program and revamping its lineup of video products, pricing and promotion initiatives. The company is well poised to benefit from the ongoing digital revolution while continuing its healthy growth momentum in wireless business.
However, the stock has underperformed the industry with an average loss of 22.8% compared with 8.3% decline of the latter in the past year. This can be largely attributed to a steady decline in linear TV subscribers and legacy services, hurting the firm’s profitability.
AT&T’s huge debt burden also acts as a major impediment in bottom-line growth. It remains to be seen if the company can improve profitability in the upcoming quarters riding on the 5G boom as a whole and 5G devices in particular.
United States Cellular has a long-term earnings growth expectation of 1%.
Sprint has a long-term earnings growth expectation of 19.6%.
Telenav beat earnings estimates in each of the trailing four quarters, the average positive surprise being 12%.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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AT&T (T) to Play Santa Early with 5G Device Launch in U.S.
AT&T Inc. (T - Free Report) recently announced that it will offer 5G devices over commercial mobile 5G network starting Dec 21, 2018 to provide customers the first taste of the future of connectivity. With this, the company is reportedly going to be the first U.S. carrier to offer 5G devices to consumers.
The upcoming 5G era is expected to unlock various use cases that depend on faster speed, wide coverage and low latency. AT&T has worked together with its technology suppliers to achieve this initial launch milestone.
The company’s 5G service entails utilization of millimeter wave spectrum for deployment in dense pockets while in suburban and rural areas, it intends to deploy 5G on mid- and low-band spectrum holdings. Such a radical change in wireless technology will help to create new economic opportunities and better experiences for consumers, and businesses serving customers across industries.
The company believes that as the 5G ecosystem evolves, customers can experience significant enhancements in coverage, speeds and devices. The telco giant earlier announced that it has introduced mobile 5G networks in parts of 12 cities — Houston, Jacksonville, Louisville, New Orleans, San Antonio, Atlanta, Charlotte, Dallas, Indianapolis, Oklahoma City, Raleigh and Waco.
The company is also planning to bring mobile 5G in certain areas of seven more cities — Las Vegas, Los Angeles, Nashville, Orlando, San Diego, San Francisco and San Jose — in the first half of 2019. The company aims to deliver select businesses and consumers its first mobile 5G device plus 5G data usage at no cost for at least 90 days.
AT&T remains focused on managing its debt portfolio and is well on track to achieve its set target of 2.5x debt-to-EBITDA range by year-end 2019. It is also ramping up its FirstNet program and revamping its lineup of video products, pricing and promotion initiatives. The company is well poised to benefit from the ongoing digital revolution while continuing its healthy growth momentum in wireless business.
However, the stock has underperformed the industry with an average loss of 22.8% compared with 8.3% decline of the latter in the past year. This can be largely attributed to a steady decline in linear TV subscribers and legacy services, hurting the firm’s profitability.
AT&T’s huge debt burden also acts as a major impediment in bottom-line growth. It remains to be seen if the company can improve profitability in the upcoming quarters riding on the 5G boom as a whole and 5G devices in particular.
AT&T currently has a Zacks Rank #3 (Hold). Better-ranked stocks in the industry include United States Cellular Corp. (USM - Free Report) , Sprint Corp. (S - Free Report) and Telenav, Inc. , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
United States Cellular has a long-term earnings growth expectation of 1%.
Sprint has a long-term earnings growth expectation of 19.6%.
Telenav beat earnings estimates in each of the trailing four quarters, the average positive surprise being 12%.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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