Categories Technology

AT&T earnings preview: Will Q2 results exceed expectations?

AT&T (T) is scheduled to announce its June quarter earnings results on July 24 after the market close. Most of the analysts are looking for the telecom veteran to post upbeat earnings for the recently concluded quarter while predicting a decline in revenue. Wireless and entertainment group additions would be the main focus of the investors.

In the recent first-quarter, the telecom giant posted a 34% jump in earnings driven by the actuarial gain on benefit plans and costs for amortization, merger- and integration-related expenses. However, revenues dropped 3.4% due to declines in legacy wireline services, domestic video, and wireless service revenues.

At the end of the first quarter, AT&T had about 55 million business wireless subscribers. Total video subscribers grew by 125,000 and the Entertainment Group ended the quarter with 25.4 million total video subscribers. DIRECTV NOW added 312,000 subscribers to reach nearly 1.5 million customers.

Related: AT&T reports Q1 2018 results; misses estimates

With regard to the AT&T-Time Warner merger, a federal appeals court approved the US Justice Department’s request for an accelerated schedule for an appeal of a judge’s ruling. The legal briefs must be closed by October 18. The department fears that the merged company will have the ability to raise its rivals’ costs and stifle growth on next-gen entrants.

For the second quarter, market analysts expect the company to report a 7.6% increase in earnings and a 1.1% decline in revenue. In the past four quarters, the company’s earnings missed Street’s expectations for two times, while beating predictions for two times. Majority of the analysts are recommending a HOLD rating on the stock.

Shares of AT&T closed Thursday’s regular trading session down 1.39% at $31.27 on the NYSE and reached a new 52-week low ($31.04) during Friday’s morning trading session.

Related: DOJ unwilling to let go, plans appeal against AT&T-Time Warner deal

Most Popular

AVGO Earnings: All you need to know about Broadcom Q1 2021 earnings results

Broadcom Limited (NASDAQ: AVGO) reported first quarter 2021 earnings results today. Total revenue increased 14% year-over-year to $6.65 billion. GAAP net income was $1.3 billion, or $3.05 per share, compared

Infographic: Costco (COST) Q2 2021 sales up 15%; earnings miss

Retail giant Costco Wholesale Corporation (NASDAQ: COST) reported higher earnings and revenues for the second quarter of 2021. Earnings missed analysts’ expectations, while sales beat. Net profit was $951 million

Will shifting to as-a-service model help Hewlett Packard in emerging stronger from COVID?

With the corporate world rapidly shifting to cloud-native computing after the virus outbreak changed work culture and the way businesses operate, technology providers are aggressively innovating their offerings. Hewlett Packard

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top