We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Zacks Computer and Technology sector has been hit hard in 2022 amid a Fed pivot to a hawkish nature, with geopolitical issues and lingering COVID-19 uncertainties also driving poor share performances.
AT&T (T - Free Report) , a company residing in the realm, is on deck to unveil quarterly results on October 20th before market open.
AT&T is North America's second-largest wireless service provider and one of the world’s leading communications service carriers.
Currently, the communications titan carries a Zacks Rank #3 (Hold) with an overall VGM Score of a B.
Let’s take a deeper dive into how it currently stacks up.
Share Performance & Valuation
Year-to-date, T shares have held up better than the general market, down 12% vs. the S&P 500’s decline of more than 20%.
Image Source: Zacks Investment Research
However, over the last three months, the story has changed visibly; AT&T shares are down more than 23%, widely lagging behind the S&P 500’s 7% decline.
Image Source: Zacks Investment Research
While T shares have displayed more strength overall in 2022, the recent price action is undoubtedly a factor to consider.
AT&T shares trade at a cheap 6.1X forward earnings multiple, well beneath the 9.1X five-year median and representing a sizable 64% discount relative to the S&P 500.
Further, the company sports a Style Score of an A for Value.
Image Source: Zacks Investment Research
Quarterly Estimates
Two analysts have upped their earnings outlook for the quarter over the last 60 days, with the Zacks Consensus EPS Estimate of $0.61 suggesting a 30% drop in quarterly earnings Y/Y.
Image Source: Zacks Investment Research
T’s top-line is also displaying some softening; the Zacks Consensus Sales Estimate of $29.8 billion for the quarter reflects a steep 25% Y/Y drop in revenue.
Quarterly Performance & Market Reactions
AT&T has repeatedly exceeded earnings estimates, surpassing the Zacks Consensus EPS Estimate in seven of its last ten quarters. Just in its latest print, the communications giant registered a solid 8.3% EPS beat.
Revenue has also primarily been positive; AT&T has penciled in six top-line beats over its last ten quarters. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Further, it’s worth noting that the market hasn’t had favorable reactions in response to the company’s quarterly prints, with shares moving downwards following three of its last four releases.
Putting Everything Together
AT&T shares are outperforming the general market overall in 2022, but as of late, they’ve lagged behind by a fair margin.
Valuation multiples aren’t stretched, with the company’s forward P/E ratio sitting well beneath its five-year median.
Two analysts have raised their quarterly earnings outlook, with estimates suggesting sizable Y/Y declines in both revenue and earnings.
Further, the company has primarily exceeded quarterly estimates, but the market has had adverse reactions following the majority of its last four prints.
Heading into the release, AT&T (T - Free Report) carries a Zacks Rank #3 (Hold) with an Earnings ESP Score of 2.7%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
AT&T Q3 Preview: Can Shares Move Higher?
The Zacks Computer and Technology sector has been hit hard in 2022 amid a Fed pivot to a hawkish nature, with geopolitical issues and lingering COVID-19 uncertainties also driving poor share performances.
AT&T (T - Free Report) , a company residing in the realm, is on deck to unveil quarterly results on October 20th before market open.
AT&T is North America's second-largest wireless service provider and one of the world’s leading communications service carriers.
Currently, the communications titan carries a Zacks Rank #3 (Hold) with an overall VGM Score of a B.
Let’s take a deeper dive into how it currently stacks up.
Share Performance & Valuation
Year-to-date, T shares have held up better than the general market, down 12% vs. the S&P 500’s decline of more than 20%.
Image Source: Zacks Investment Research
However, over the last three months, the story has changed visibly; AT&T shares are down more than 23%, widely lagging behind the S&P 500’s 7% decline.
Image Source: Zacks Investment Research
While T shares have displayed more strength overall in 2022, the recent price action is undoubtedly a factor to consider.
AT&T shares trade at a cheap 6.1X forward earnings multiple, well beneath the 9.1X five-year median and representing a sizable 64% discount relative to the S&P 500.
Further, the company sports a Style Score of an A for Value.
Image Source: Zacks Investment Research
Quarterly Estimates
Two analysts have upped their earnings outlook for the quarter over the last 60 days, with the Zacks Consensus EPS Estimate of $0.61 suggesting a 30% drop in quarterly earnings Y/Y.
Image Source: Zacks Investment Research
T’s top-line is also displaying some softening; the Zacks Consensus Sales Estimate of $29.8 billion for the quarter reflects a steep 25% Y/Y drop in revenue.
Quarterly Performance & Market Reactions
AT&T has repeatedly exceeded earnings estimates, surpassing the Zacks Consensus EPS Estimate in seven of its last ten quarters. Just in its latest print, the communications giant registered a solid 8.3% EPS beat.
Revenue has also primarily been positive; AT&T has penciled in six top-line beats over its last ten quarters. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Further, it’s worth noting that the market hasn’t had favorable reactions in response to the company’s quarterly prints, with shares moving downwards following three of its last four releases.
Putting Everything Together
AT&T shares are outperforming the general market overall in 2022, but as of late, they’ve lagged behind by a fair margin.
Valuation multiples aren’t stretched, with the company’s forward P/E ratio sitting well beneath its five-year median.
Two analysts have raised their quarterly earnings outlook, with estimates suggesting sizable Y/Y declines in both revenue and earnings.
Further, the company has primarily exceeded quarterly estimates, but the market has had adverse reactions following the majority of its last four prints.
Heading into the release, AT&T (T - Free Report) carries a Zacks Rank #3 (Hold) with an Earnings ESP Score of 2.7%.