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Can Improved Latin America Revenues Aid AT&T (T) Q4 Earnings?
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AT&T Inc. (T - Free Report) is scheduled to report fourth-quarter 2023 results on Jan 24, before the opening bell. In the fourth quarter, the Latin America segment is likely to have recorded higher revenues on a year-over-year basis despite a challenging macroeconomic environment and inflationary pressure owing to wireless traction.
Factors at Play
The Latin America segment comprises wireless services and equipment in Mexico.
In the fourth quarter, AT&T expanded its 5G network infrastructure in Mexico. The company offered various mix-and-match Unlimited Plans with multiple lines, along with seamless data connectivity and high-speed, low-latency communication network facilities. Such initiatives are likely to be reflected in the upcoming results.
During the to-be-reported quarter, AT&T México continued to undergo technological tests of private networks for developing use cases that help accelerate their adoption within industries. With lower latency and greater predictability, this technological innovation helps enable multiple protocols and digital links, thereby contributing to the development of new use cases. This is likely to have translated into higher revenues for the company.
However, adverse foreign currency translations and high operating costs for 5G deployments are likely to have led to soft margins in the quarter. Continuous infrastructure investments for 5G deployments are expected to have weighed on margins. In addition, AT&T is reportedly relinquishing spectrum in Mexico for high operational and usage costs. A challenging macroeconomic environment is also expected to have partially hurt the top line.
Our estimate for revenues from the Latin America segment is pegged at $987.5 million, indicating an increase from $861 million reported in the year-ago quarter. Our estimate for operating loss from the segment stands at $28.1 million, suggesting an improvement from an operating loss of $79 million a year ago.
Overall Expectations
The Zacks Consensus Estimate for total revenues is pegged at $31,459 million, indicating a marginal increase from $31,343 million reported in the prior-year quarter. The consensus mark for earnings is currently pegged at 55 cents per share. It had reported earnings of 61 cents per share in the year-earlier quarter.
Earnings Whispers
Our proven model predicts an earnings beat for AT&T for the fourth quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is exactly the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +0.30%. The Most Accurate Estimate is pegged at 56 cents, while the consensus estimate is 55 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some other companies you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat this season:
The Earnings ESP for Silicon Motion Technology Corporation (SIMO - Free Report) is +4.92% and it carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Feb 6.
The Earnings ESP for Meta Platforms, Inc. (META - Free Report) is +1.46% and it carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Feb 1.
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Can Improved Latin America Revenues Aid AT&T (T) Q4 Earnings?
AT&T Inc. (T - Free Report) is scheduled to report fourth-quarter 2023 results on Jan 24, before the opening bell. In the fourth quarter, the Latin America segment is likely to have recorded higher revenues on a year-over-year basis despite a challenging macroeconomic environment and inflationary pressure owing to wireless traction.
Factors at Play
The Latin America segment comprises wireless services and equipment in Mexico.
In the fourth quarter, AT&T expanded its 5G network infrastructure in Mexico. The company offered various mix-and-match Unlimited Plans with multiple lines, along with seamless data connectivity and high-speed, low-latency communication network facilities. Such initiatives are likely to be reflected in the upcoming results.
During the to-be-reported quarter, AT&T México continued to undergo technological tests of private networks for developing use cases that help accelerate their adoption within industries. With lower latency and greater predictability, this technological innovation helps enable multiple protocols and digital links, thereby contributing to the development of new use cases. This is likely to have translated into higher revenues for the company.
However, adverse foreign currency translations and high operating costs for 5G deployments are likely to have led to soft margins in the quarter. Continuous infrastructure investments for 5G deployments are expected to have weighed on margins. In addition, AT&T is reportedly relinquishing spectrum in Mexico for high operational and usage costs. A challenging macroeconomic environment is also expected to have partially hurt the top line.
Our estimate for revenues from the Latin America segment is pegged at $987.5 million, indicating an increase from $861 million reported in the year-ago quarter. Our estimate for operating loss from the segment stands at $28.1 million, suggesting an improvement from an operating loss of $79 million a year ago.
Overall Expectations
The Zacks Consensus Estimate for total revenues is pegged at $31,459 million, indicating a marginal increase from $31,343 million reported in the prior-year quarter. The consensus mark for earnings is currently pegged at 55 cents per share. It had reported earnings of 61 cents per share in the year-earlier quarter.
Earnings Whispers
Our proven model predicts an earnings beat for AT&T for the fourth quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is exactly the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +0.30%. The Most Accurate Estimate is pegged at 56 cents, while the consensus estimate is 55 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
AT&T Inc. Price and EPS Surprise
AT&T Inc. price-eps-surprise | AT&T Inc. Quote
Zacks Rank: AT&T has a Zacks Rank #3.
Other Stocks to Consider
Here are some other companies you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat this season:
Qualcomm Incorporated (QCOM - Free Report) is set to release quarterly numbers on Jan 31. It has an Earnings ESP of +3.45% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Earnings ESP for Silicon Motion Technology Corporation (SIMO - Free Report) is +4.92% and it carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Feb 6.
The Earnings ESP for Meta Platforms, Inc. (META - Free Report) is +1.46% and it carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Feb 1.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.