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AT&T Third Quarter Earnings Preview
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On Wednesday, October 24, 2012, AT&T (NYSE:T) will announce its third quarter earnings. The consensus analyst estimate has dropped from 64 cents a share to the current estimate of earnings of 61 cents a share.
Earnings are perhaps the single most studied number in a company's financial statements because they show a company's profitability. SEE: 5 Tricks Companies Use During Earnings Season
What to Expect: Whereas the consensus estimate was 63 cents three months ago, it has since fallen. Analysts are projecting earnings of $2.38 per share for the fiscal year.
AT&T is expected to report revenue of $31.57 billion for the quarter, beating last year's figure of $31.48 billion by 0.3%. Revenue of $127.13 billion is expected for the fiscal year.
Company Performance: The past three quarters have marked revenue growth. It hit $31.57 billion in second quarter, a 0.3% increase. Previously, revenue went up 1.8% in the first quarter and 3.6% in the fourth quarter of the last fiscal year.
T's P/E ratio of 48.7 is above the industry average of 8.54. Generally speaking, the higher the P/E ratio, the higher the market expectations for a company's future performance. A company's price/earnings ratio (P/E ratio) provides a measure of how expensive or cheap a stock is. From the investor's perspective, a stock with a lower ratio is relatively cheaper than a stock with a higher ratio. SEE: Can Investors Trust the P/E Ratio?
Over the past quarter, the stock price has increased from $35.38 on July 23, 2012 to $36.02. The stock saw one of its worst stretches when its price fell $3.13 per share between October 4, 2012 and October 15, 2012.
The Competition: AT&T is a holding company whose subsidiaries and affiliates provide wireless and wireline telecommunications services and products to consumers and businesses worldwide. It also provides directory advertising and publishing services in the United States and international markets. Analysts generally consider AT&T a hold, with 20 of 30 analysts rating it as such. In the last three months, the number of buy ratings has increased slightly.
The company's closest competitor in the communications services industry is Verizon (VZ). Analysts are less optimistic about AT&T than about Verizon. Twelve out of 31 analysts rate the latter a buy compared to nine of 30 for the former.
Earnings are perhaps the single most studied number in a company's financial statements because they show a company's profitability. SEE: 5 Tricks Companies Use During Earnings Season
What to Expect: Whereas the consensus estimate was 63 cents three months ago, it has since fallen. Analysts are projecting earnings of $2.38 per share for the fiscal year.
AT&T is expected to report revenue of $31.57 billion for the quarter, beating last year's figure of $31.48 billion by 0.3%. Revenue of $127.13 billion is expected for the fiscal year.
Company Performance: The past three quarters have marked revenue growth. It hit $31.57 billion in second quarter, a 0.3% increase. Previously, revenue went up 1.8% in the first quarter and 3.6% in the fourth quarter of the last fiscal year.
Over the past quarter, the stock price has increased from $35.38 on July 23, 2012 to $36.02. The stock saw one of its worst stretches when its price fell $3.13 per share between October 4, 2012 and October 15, 2012.
The Competition: AT&T is a holding company whose subsidiaries and affiliates provide wireless and wireline telecommunications services and products to consumers and businesses worldwide. It also provides directory advertising and publishing services in the United States and international markets. Analysts generally consider AT&T a hold, with 20 of 30 analysts rating it as such. In the last three months, the number of buy ratings has increased slightly.
The company's closest competitor in the communications services industry is Verizon (VZ). Analysts are less optimistic about AT&T than about Verizon. Twelve out of 31 analysts rate the latter a buy compared to nine of 30 for the former.
by
Investopedia Staff
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