Uncovering Potential: AT&T's Earnings Preview

AT&T T is preparing to release its quarterly earnings on Wednesday, 2024-10-23. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect AT&T to report an earnings per share (EPS) of $0.57.

The announcement from AT&T is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Earnings Track Record

In the previous earnings release, the company missed EPS by $0.00, leading to a 0.16% increase in the share price the following trading session.

Here's a look at AT&T's past performance and the resulting price change:

Tracking AT&T's Stock Performance

Shares of AT&T were trading at $21.66 as of October 21. Over the last 52-week period, shares are up 39.83%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Insights Shared by Analysts on AT&T

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on AT&T.

The consensus rating for AT&T is Outperform, derived from 11 analyst ratings. An average one-year price target of $22.82 implies a potential 5.36% upside.

Comparing Ratings Among Industry Peers

In this comparison, we explore the analyst ratings and average 1-year price targets of Verizon Communications, Frontier Communications and Shenandoah, three prominent industry players, offering insights into their relative performance expectations and market positioning.

• As per analysts' assessments, Verizon Communications is favoring an Neutral trajectory, with an average 1-year price target of $47.03, suggesting a potential 117.13% upside.
• Frontier Communications received a Buy consensus from analysts, with an average 1-year price target of $36.14, implying a potential 66.85% upside.
• Shenandoah is maintaining an Buy status according to analysts, with an average 1-year price target of $26.0, indicating a potential 20.04% upside.

Analysis Summary for Peers

In the peer analysis summary, key metrics for Verizon Communications, Frontier Communications and Shenandoah are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.

Key Takeaway:

AT&T ranks at the bottom for Revenue Growth among its peers. It is in the middle for Gross Profit. AT&T is at the bottom for Return on Equity.

Discovering AT&T: A Closer Look

The wireless business contributes nearly 70% of AT&T's revenue. The firm is the third-largest US wireless carrier, connecting 72 million postpaid and 17 million prepaid phone customers. Fixed-line enterprise services, which account for about 16% of revenue, include internet access, private networking, security, voice, and wholesale network capacity. Residential fixed-line services, about 11% of revenue, primarily consist of broadband internet access, serving 14 million customers. AT&T also has a sizable presence in Mexico, with 23 million customers, but this business only accounts for 4% of revenue. The firm still holds a 70% equity stake in satellite television provider DirecTV but does not consolidate this business in its financial statements.

Breaking Down AT&T's Financial Performance

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

Revenue Growth: AT&T's revenue growth over a period of 3 months has faced challenges. As of 30 June, 2024, the company experienced a revenue decline of approximately -0.4%. This indicates a decrease in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Communication Services sector.

Net Margin: AT&T's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 11.9% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): AT&T's ROE excels beyond industry benchmarks, reaching 3.38%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): AT&T's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 0.89%, the company may face hurdles in achieving optimal financial returns.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 1.4, caution is advised due to increased financial risk.

To track all earnings releases for AT&T visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.