Telecommunications conglomerate AT&T (NYSE:T) will be reporting earnings tomorrow morning. Here’s what investors should know.
AT&T met analysts’ revenue expectations last quarter, reporting revenues of $29.8 billion, flat year on year. It was a mixed quarter for the company, with a narrow beat of analysts’ EBITDA estimates but a miss of analysts’ Mobility revenue 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 $30.45 billion, in line with the 1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.57 per share.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 11 downward revisions over the last 30 days (we track 16 analysts). AT&T has missed Wall Street’s revenue estimates five times over the last two years.
Looking at AT&T’s peers in the consumer discretionary segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Nike’s revenues decreased 10.4% year on year, meeting analysts’ expectations, and Scholastic reported revenues up 3.8%, topping estimates by 1.6%. Nike traded down 6.8% following the results while Scholastic was up 6%.
Read our full analysis of Nike’s results here and Scholastic’s results here.
Investors in the consumer discretionary segment have had steady hands going into earnings, with share prices flat over the last month. AT&T is up 1.1% during the same time and is heading into earnings with an average analyst price target of $22.40 (compared to the current share price of $21.73).
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