AT&T To Release Q4 Results Monday After Rival Verizon’s Outperformance: Retail Nervy Ahead Of Report

Consensus estimates a decline in adjusted earnings per share year-over-year and sequentially, and flat revenue

Published: Jan 27, 2025, 9:33 AM IST

The spotlight shifts to AT&T, Inc.’s (T) fourth-quarter results, due before the market opens on Monday, after peer Verizon Communications, Inc. (VZ) reported solid results on Friday.

An earnings call will be hosted by AT&T management at 8:30 a.m. ET.

On average, analysts expect the company to report adjusted earnings per share (EPS) of $0.50, down from the year ago’s $0.54 a year ago and the third quarter’s $0.60. Revenue is estimated at $32.02 billion, flat with last year and the preceding quarter.

The company revenue trailed expectations in each of the past three quarters.

Investors are likely to focus on AT&T’s wireless service revenue growth, customer additions by both its wireless and broadband businesses and capital investment. CFO Pascal Desroches said on the third-quarter earnings call in late October that capital investment will be higher than previous quarter’s $5.5 billion.

Rival Verizon’s fourth-quarter adjusted earnings per share (EPS) came in at $1.10, in line with the consensus, and operating revenue climbed 1.6% year-over-year (YoY) to $35.68 billion, slightly ahead of the $35.36 billion Street estimate. Its wireless service revenue climbed 3.1%.

AT&T announced last week that it has completed a structured sale-leaseback of underutilized central office facilities. The company realized more than $850 million in upfront cash proceeds from the asset transfer of 74 properties located across the country.

Following the company’s Analyst Day, Argus upgraded AT&T stock to ‘Buy’ from ‘Hold’ with a $27 price target, TheFly reported. Analysts at the firm said the company presented a strong case for shareholder returns, earnings, and cash flow. They expect the company to benefit from revenue acceleration over time, network modernization and cost savings.

Argus said the management’s vision of opportunities from wireless/fiber convergence and its investment provide a compelling vision for growth and shareholder returns.

For the fourth quarter, AT&T currently anticipates wireless service revenue growth of 3% and broadband revenue growth of 7%, and adjusted EPS of $2.15-$2.25. The consensus estimate calls for adjusted EPS of $2.19.

On Stocktwits, sentiment toward AT&T stock worsened to ‘bearish’ (44/45) from ‘neutral’ a day ago, with message volume at ‘low’ levels.