Telecommunications conglomerate AT&T (NYSE: T) will be announcing earnings results this Wednesday before the bell. Here’s what investors should know.
AT&T beat analysts’ revenue expectations by 1% last quarter, reporting revenues of $30.63 billion, up 2% year on year. It was a mixed quarter for the company, with a decent beat of analysts’ adjusted operating income estimates but a slight 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 grow 2.2% year on year to $30.45 billion, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $0.53 per share.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 5 downward revisions over the last 30 days (we track 16 analysts). AT&T has missed Wall Street’s revenue estimates four times over the last two years.
Looking at AT&T’s peers in the consumer discretionary segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Verizon delivered year-on-year revenue growth of 5.2%, beating analysts’ expectations by 2.3%, and Levi's reported revenues up 6.4%, topping estimates by 5.8%. Levi's traded up 11.1% following the results.
Read our full analysis of Verizon’s results here and Levi’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 11.3% on average over the last month. AT&T is down 2.9% during the same time and is heading into earnings with an average analyst price target of $29.93 (compared to the current share price of $27.40).
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