Valued at a market cap of $162.7 billion, AT&T Inc. (T) provides telecommunications and technology services. It offers various communication and business solutions, including wireless, local exchange, long-distance, data/broadband and Internet, video, managed networking, wholesale, and cloud-based services. The Dallas, Texas-based company is expected to announce its fiscal Q4 earnings results before the market opens on Monday, Jan. 27.
Ahead of this event, analysts project the telecommunications giant to report a profit of $0.48 per share, down 11.1% from $0.54 per share in the year-ago quarter. The company has surpassed Wall Street's earnings estimates in two of the last four quarters while missing on other two occasions. Its adjusted earnings per share in the last reported quarter outpaced the forecasted figure by 1.7%.
For fiscal 2024, analysts expect T to report an EPS of $2.20, down 8.7% from $2.41 in fiscal 2023.
Shares of T have rallied 31.6% over the past 52 weeks, outperforming the S&P 500 Index's ($SPX) 26.3% rise, but underperforming the Communication Services Select Sector SPDR ETF Fund’s (XLC) 36% return over the same time frame.
Shares of AT&T soared 4.6% after its Q3 earnings release on Oct. 23, due to adjusted earnings of 60 cents per share, beating analysts' estimates. The company also reported strong subscriber growth, adding 429,000 post-paid net additions, including 403,000 postpaid wireless phone additions. Additionally, AT&T generated $5.1 billion in free cash flow, showcasing a strong cash flow position. The company's reaffirmed guidance for 2024, including a projected 3% increase in wireless service revenues and 7% growth in broadband revenues, helped boost investor confidence.
Analysts are moderately optimistic about AT&T’s stock, with a "Moderate Buy" rating overall. Among 27 analysts covering the stock, 14 recommend "Strong Buy," two suggest “Moderate Buy,” 10 indicate “Hold,” and one suggest a “Strong Sell” rating. This configuration is more bullish than three months ago, with 12 analysts suggesting a "Strong Buy."
The average analyst price target for T is $26.10 indicating a modest 15.1% potential upside from the current levels.
