Dallas, Texas-based AT&T Inc. (T) is a leading global communications service carrier and the second-largest wireless service provider in North America. It offers various communication and business solutions, including wireless, broadband, video, and cloud-based services. Its market cap currently stands at $134.8 billion. T is scheduled to release its fiscal 2024 Q2 earnings results before the market opens on Wednesday, Jul. 24.
Ahead of the event, analysts expect AT&T to report a profit of $0.58 per share, down 7.9% from $0.63 per share in the year-ago quarter. The company has exceeded Wall Street’s EPS estimates in three of the last four quarters and missed on one occasion.
AT&T’s EPS of $0.55 for the last reported quarter declined 8.3% year over year but surpassed the consensus estimate by 3.8%, thanks to the continued strong growth in its Mobility and Consumer Wireline connectivity businesses.
Looking ahead, analysts expect AT&T to report an EPS of $2.23 in fiscal 2024, down 7.5% from $2.41 in fiscal year 2023. Moreover, its fiscal 2025 EPS is projected to rise 4% annually to $2.32.
Over the past 52 weeks, T’s stock has surged 21.6%, trailing behind the broader S&P 500 Index's ($SPX) 26.8% gains and the Communication Services Select Sector SPDR Fund’s (XLC) 34.7% returns over the same time frame.
Over the past few years, AT&T has acquired premier assets such as HBO, CNN, and TNT through its strategic acquisition of Time Warner, enabling the creation of innovative online video content and sophisticated targeted advertising. The company is advancing its focus on streaming services with AT&T TV and HBO Max while simultaneously expanding 5G coverage, paving the way for lucrative monetization opportunities.
Nevertheless, AT&T confronts significant challenges, such as decelerating business wireless subscriber growth caused by market saturation and heightened competition in the wireless sector. Additionally, security breaches, where hackers have stolen and disseminated sensitive information of millions of current and former AT&T customers on the dark web, have alarmed investors.
Despite challenges, the telecom company’s shares rose nearly 1.9% after the company's Q1 earnings release on April 24, where it exceeded Wall Street’s expectations on both revenue and earnings.
The current consensus opinion on AT&T stock is “Moderate Buy” overall. Out of 22 analysts covering the stock, 12 suggest a “Strong Buy,” one recommends a “Moderate Buy,” and nine advise a “Hold.”
Furthermore, the average analyst price target for T is $21.14, indicating a potential upside of 12.4% from the current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
