AT&T Inc. (NYSE: T) is scheduled to report fourth quarter 2019 earnings results on Wednesday, January 29, before the market opens. The company is expected to report earnings of $0.87 per share compared to $0.86 per share reported last year. Revenue is expected to dip by 2% to $46.9 billion.
Last quarter, the company saw strength in wireless services and this can be expected to continue in the fourth quarter as well. The development and rollout of 5G services is an important factor in this area. The momentum was offset by weakness in legacy wireline services and WarnerMedia.
The key topic of focus during the announcement is likely to be HBO Max, which is set to launch in May 2020 with 10,000 hours of premium content at $14.99 a month. HBO has a wide library of popular content which will be an advantage for the company.
AT&T is developing a company-wide membership model that will tap into its 170 million direct-to-consumer relationships, 5,500 retail stores and 3.2 billion annual customer touchpoints. However, higher costs related to investments in HBO Max might hurt margins in the quarter.
In the third quarter of 2019, AT&T beat earnings estimates while revenues fell short of expectations. Revenues fell 3% to $44.6 billion while adjusted EPS rose 4% to $0.94.
Last quarter, the company revealed a 3-year financial outlook and capital allocation plan, which is expected to drive significant growth in EBITDA margins and EPS, and allow it to invest in growth areas, retire shares and pay down debt. The capital allocation plan includes dividend growth and payout ratio, share retirement, retiring 100% of the acquisition debt from the Time Warner deal, and continued disciplined review of the portfolio.
In 2019, AT&T had planned to close about $14 billion from monetizing non-core assets. In 2020, the company expects to monetize $5 billion to $10 billion of non-strategic assets.
Shares of AT&T have gained over 25% in the past one year.
Most Popular
Intensity Therapeutics is establishing a new field of localized cancer reduction: CEO
Intensity Therapeutics, Inc. (NASDAQ: INTS) is a clinical biotechnology company engaged in the discovery development, and commercialization of first-in-class cancer drugs that attenuate tumors with minimal side effects while training
INTU Earnings: Intuit Q1 2025 adj. profit rises on higher revenues
Financial technology company Intuit Inc. (NASDAQ: INTU) Thursday announced results for the first quarter of 2025, reporting a modest increase in adjusted earnings. The Mountain View-headquartered company’s first-quarter revenue came
Riding the AI wave, Nvidia looks set to stay on the high-growth path
After delivering strong results for the third quarter, Nvidia Corporation (NASDAQ: NVDA) this week said the launch of its new-generation Blackwell chip is on track. The company is thriving on
