AT&T Corporation (T. – Free Report) will report results for the fourth quarter of 2022 before the opening bell on January 25. jobs.
important factor
The Communications segment has three business units: Mobility, Entertainment Group and Business Wireline.
In the fourth quarter, AT&T expanded its 5G network infrastructure and launched 5G+ services in select regions. The company’s 5G network now covers more than 281 million users nationwide, and the 5G+ network is available in some of his 45 cities. AT&T has rolled out its C-band spectrum in stages to further expand its 5G+ coverage. The company has benefited from seamless access to 5G technology on its consumer and enterprise unlimited wireless plans and low levels of wireless churn due to the growing adoption of its Unlimited Elite wireless plans. increase. Such efforts may be reflected in future business results.
During the fourth quarter, AT&T continued its aggressive fiber build initiative, adding 3.5 to 4 million additional locations each year to significantly expand its existing fiber footprint to more than 30 million locations by the end of 2025. I’m aiming to connect with fiber. The company expects 75% of its network footprint to be served by either fiber or 5G, which could halve its traditional copper service exposure. These simplification initiatives may have driven additional cost savings while creating new revenue opportunities.
In the reporting quarter, AT&T signed a definitive agreement with asset management firm BlackRock to create a joint venture to operate a commercial fiber platform that leverages its profitable fiber optic business. A joint venture initiative called Gigapower LLC will leverage its extensive fiber network and nationwide sales capabilities to bring fiber to his 1.5 million customer locations outside of his traditional 21-state wired service footprint. Deploy your network commercially. This may have led to increased revenue.
However, unfavorable FX translation and high operating costs of 5G deployments may have contributed to lower profit margins in the fourth quarter. As the company aims to expand fiber construction in metropolitan areas, it expects to connect key locations with fiber. Continued infrastructure investments for fiber and his 5G rollout may have squeezed margins.
The company’s wireline division has also suffered a sustained loss of access lines as a result of competitive pressure from Voice over Internet Protocol service providers and aggressive triple play (voice, data and video) offerings by cable companies. is. AT&T faces a steady decline in linear TV subscribers and legacy services. High-speed Internet revenues are also shrinking due to the decline in traditional digital subscriber lines, simplified pricing, and bundled discounts.
overall expectations
The Zacks consensus forecast for telecoms remains pegged at $30,537 million, representing a slight improvement from $30,206 million in the same period last year. His EBITDA consensus mark for this segment is his $11.238 billion, suggesting an uptick from $10.607 billion.
According to Zacks consensus estimates, the company’s total revenues were $31,411 million, down from $40,958 million in the same period last year. The earnings consensus mark is currently pegged at 59 cents per share. His earnings per share in the same period last year were 78 cents.
Earnings whisper
Our time-tested model doesn’t predict higher AT&T earnings in the fourth quarter. A combination of positive earnings ESP and a Zacks rank of 1 (strong buy), 2 (buy), or 3 (hold) increases the likelihood of winning above earnings. Not so here.
Revenue ESP: The earnings ESP representing the difference between the Most Accurate Estimate and the Zacks Consensus Estimate is -5.98%, fixed at 55 cents for the former and 59 cents for the latter. Earnings ESP filters help you find the best stocks to buy or sell before they’re reported.
Zack Rank: AT&T ranks #3 on Zacks Rank.
Stocks to Consider
Our model shows that these companies have the right mix of factors to outperform earnings this season, so here are the companies we recommend considering.
Verizon Communications K.K. (VZ – Free Report will release quarterly figures on February 24. Revenue ESP is +0.42% and Zacks Ranks #3.you can see See the full list of today’s Zacks #1 ranked stocks here.
Earnings of ESP T-Mobile US, Inc. (TMUS – Free Report) is +3.00% and Zacks rank is 3. The company plans to report quarterly figures on February 1.
Earnings of ESP Meta Platforms Inc. (meta – Free Report) is +10.48% and Zacks Rank is 3. The company plans to report quarterly figures on February 1.
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