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AT&T Inc. (T) Sheds 0.5% Ahead of Earnings: What To Expect
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Shares of AT&T Inc. (T - Free Report) lost about 0.5% during regular hours Monday, the last day of trading before it releases its latest quarterly earnings report. Investors displayed hesitance ahead of the report, but this is certainly still a stock to watch once the full results are in.
AT&T reported mixed results in its last earnings report, missing earnings and revenue expectations despite solid prepaid phone gains, record low first-quarter postpaid phone churn and continued DirecTV Now subscriber growth. However AT&T did reiterate its full-year guidance, easing some concerns.
A heavy debt load and legal issues surrounding the Time Warner acquisition were notable shadows hanging over T’s last earnings report. However, the transaction was approved and completed in June, paving the way for the company to transform into a modern media behemoth. AT&T is also gearing up to launch the first standards-based mobile 5G services in multiple US markets by the end of 2018. The upcoming earnings report will be a key indicator of the progress and management expectations on these latest initiatives.
According to our latest Zacks Consensus Estimates, analysts expect AT&T to report earnings of $0.87 per share on $39.63 billion in revenue. These results would mark year-over-year growth of 10.1% in earnings but a loss of 0.5% in revenue.
Investors should also note that T’s consensus earnings projection has trended downward over the course of the quarter. The firm has seen 8 negative estimates for this quarter in the last month, with 2 coming in just the last week. However, it has seen a roughly 50/50 split in positive and negative revisions across the next quarter, current year, and next year. This mixed revision activity has contributed to the stock’s Zacks Rank #3 (Hold).
Looking at share price performance, T has shed 14.2% over the past year. However, the stock has performed even more poorly as of late, losing 20% on a year-to-date basis. More recently, shares have dropped about 11.2% over the trailing 12 weeks.
A strong earnings beat might be what T needs in order to start building momentum in the right direction. To gauge how likely the company is to outperform estimates tomorrow morning, we can turn to our exclusive Earnings ESP figure.
Zacks Earnings ESP (Expected Surprise Prediction) compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter. The Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change.
This is done because, generally speaking, when an analyst posts an estimate right before an earnings release, it means that they have fresh information which could potentially be more accurate than what analysts thought about a company two or three months ago.
A positive Earnings ESP paired with a Zacks Rank #3 (Hold) or better ranking helps us feel confident about the potential for an earnings beat. In fact, our 10-year backtest has revealed that this methodology has accurately produced a positive surprise 70% of the time.
T currently has an Earnings ESP of 1.09%. This, combined with its Zacks Rank, leaves us optimistic about its chances at beating earnings estimates on Tuesday.
Make sure to check back here for our full analysis once AT&T reports!
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AT&T Inc. (T) Sheds 0.5% Ahead of Earnings: What To Expect
Shares of AT&T Inc. (T - Free Report) lost about 0.5% during regular hours Monday, the last day of trading before it releases its latest quarterly earnings report. Investors displayed hesitance ahead of the report, but this is certainly still a stock to watch once the full results are in.
AT&T reported mixed results in its last earnings report, missing earnings and revenue expectations despite solid prepaid phone gains, record low first-quarter postpaid phone churn and continued DirecTV Now subscriber growth. However AT&T did reiterate its full-year guidance, easing some concerns.
A heavy debt load and legal issues surrounding the Time Warner acquisition were notable shadows hanging over T’s last earnings report. However, the transaction was approved and completed in June, paving the way for the company to transform into a modern media behemoth. AT&T is also gearing up to launch the first standards-based mobile 5G services in multiple US markets by the end of 2018. The upcoming earnings report will be a key indicator of the progress and management expectations on these latest initiatives.
According to our latest Zacks Consensus Estimates, analysts expect AT&T to report earnings of $0.87 per share on $39.63 billion in revenue. These results would mark year-over-year growth of 10.1% in earnings but a loss of 0.5% in revenue.
Investors should also note that T’s consensus earnings projection has trended downward over the course of the quarter. The firm has seen 8 negative estimates for this quarter in the last month, with 2 coming in just the last week. However, it has seen a roughly 50/50 split in positive and negative revisions across the next quarter, current year, and next year. This mixed revision activity has contributed to the stock’s Zacks Rank #3 (Hold).
Looking at share price performance, T has shed 14.2% over the past year. However, the stock has performed even more poorly as of late, losing 20% on a year-to-date basis. More recently, shares have dropped about 11.2% over the trailing 12 weeks.
A strong earnings beat might be what T needs in order to start building momentum in the right direction. To gauge how likely the company is to outperform estimates tomorrow morning, we can turn to our exclusive Earnings ESP figure.
Zacks Earnings ESP (Expected Surprise Prediction) compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter. The Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change.
This is done because, generally speaking, when an analyst posts an estimate right before an earnings release, it means that they have fresh information which could potentially be more accurate than what analysts thought about a company two or three months ago.
A positive Earnings ESP paired with a Zacks Rank #3 (Hold) or better ranking helps us feel confident about the potential for an earnings beat. In fact, our 10-year backtest has revealed that this methodology has accurately produced a positive surprise 70% of the time.
T currently has an Earnings ESP of 1.09%. This, combined with its Zacks Rank, leaves us optimistic about its chances at beating earnings estimates on Tuesday.
Make sure to check back here for our full analysis once AT&T reports!
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>