Telecommunications conglomerate AT&T (NYSE:T) will be reporting earnings tomorrow before market open. Here’s what investors should know.
AT&T missed analysts’ revenue expectations by 0.8% last quarter, reporting revenues of $30.21 billion, flat year on year. It was a slower quarter for the company, with a miss of analysts’ EPS estimates.
Is AT&T a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting AT&T’s revenue to be flat year on year at $31.94 billion, slowing from the 2.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.51 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. AT&T has missed Wall Street’s revenue estimates six times over the last two years.
Looking at AT&T’s peers in the consumer discretionary segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Verizon delivered year-on-year revenue growth of 1.6%, beating analysts’ expectations by 1%, and Nike reported a revenue decline of 7.7%, topping estimates by 2%. Nike’s stock price was unchanged following the results.
Read our full analysis of Verizon’s results here and Nike’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 4.6% on average over the last month. AT&T’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $26.15 (compared to the current share price of $22.65).
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