AT&T Earnings: AT&T Inc. (NYSE:T) flaunted 0.62% to reach at $29.11 during trading session

The USA listed company saw a recent price trade of $29.11 and 51,913,344 shares have traded hands in the session. There are 42.26M shares which are traded as an average over the last three months period.

AT&T Inc. (T) has completely missed the broader stock market’s advance in the past year as the company has been buffeted by an array of negative forces. The company’s theatrical distribution business has been devastated by the COVID-19 pandemic as consumers stay at home. And the broad trend away from pay-TV services, including AT&T’s DirecTV business, has offset stable revenue in the company’s wireless and broadband businesses, hurting earnings and revenue.

For these reasons, investors will look closely for any signs of improvement when AT&T reports earnings for Q4 FY 2020 before market open on January 27th.2 Analysts predict that the company will report a significant year-over-year (YOY) decline in adjusted earnings per share (EPS) and a decline in revenue.

Another key metric for investors to watch is AT&T’s number of post-paid wireless phone net additions. This metric refers to the number of people who signed up for continual subscription wireless plans, a core component of AT&T’s wireless business. Analysts estimate that the number of post-paid wireless phone net additions in Q4 FY 2020 will more than double compared to the same period a year earlier.

AT&T shares have struggled despite multiple strong quarters of post-paid wireless phone net additions. Since plummeting along with the broader market in early 2020, AT&T stock has traded sideways for most of the past year, badly lagging the broader stock market. AT&T shares have provided a total return of -18.3% over the past 12 months, far below the S&P 500’s total return of 18.9% over the same period. All numbers are as of January 25, 2020.

The lackluster performance of AT&T shares is illustrated by its earnings and revenue growth. AT&T has posted anemic growth or falling adjusted EPS in recent quarters. Four out of the past seven quarters have seen YOY declines in adjusted EPS, with the other three quarters showing only modest improvement of about 4% or less. Notably, AT&T posted YOY declines in adjusted EPS in the first three quarters of FY 2020. The YOY drop of 19.2% in the most recent Q3 period was the sharpest decline in at least four years. Analysts expect A&T to post another major decline of 16.9% in Q4 FY 2020.

AT&T’s quarterly revenue growth also has been weak. In the past four years, revenue has increased YOY in only four quarters, from Q3 FY 2018 through Q2 FY 2019. The five most recent quarters have all seen YOY declines of as much as 8.9%. Analysts estimate revenue will drop 4.9% YOY in Q4 FY 2020, double the pace of the same quarter a year earlier. The silver lining may be that this decline will be less than than Q2 and Q3 of FY 2020.

On 01-26-2k21 (Tuesday) Shareholders tracking shares of AT&T Inc. (T) belongs to Communication Services sector and Telecom Services industry. T Inc. has a total market value of 206.72B at the time of writing – representing $7.15B outstanding shares. Turning to other widely-considered trading data, this company’s half yearly performance is observed at -1.56%.

T Performance Levels

Looking performance record on shares of AT&T Inc. (T) we observed that the stock has seen a move -24.39% over the last 52-week trading period. The stock generated performance of 2.93% tracking last 3 months. Investors will be anxiously watching to see if things will turn around and the stock will start gaining or losing momentum over the next few months. If we look back year-to-date, the stock has performed 1.22%. Shares are at -0.21% over the previous week and 2.50% over the past month.

Analyst Views: Fluctuating the focus to what the Wall Street analysts are projecting, we can see that the current consensus target price on shares is $31.01. Analysts often put in a lot of work to study stocks that they cover. Wall Street analysts have a consensus recommendation of 2.80on this stock. This number falls on a one to five scale where a 1 would be considered a strong buy and 5 means a strong sell, 2 shows Buy, 3 Hold, 4 reveals Sell recommendation.

Volatility Insights

Watching some historical volatility numbers on shares of AT&T Inc. (T) we can see that the 30 days volatility is presently 1.60%. The 7 days volatility is 1.56%. Following volatility data can help measure how much the stock price has fluctuated over the specified time period. Although past volatility action may help project future stock volatility, it may also be vastly different when taking into account other factors that may be driving price action during the measured time period.

The company has a beta of 0.73. 1.00 indicates that its price is correlated with the market. Less than 1.00 shows less volatility than the market. Beta greater than 1.00 indicates that the security’s price is theoretically more volatile than the market.

The Average True Range (ATR) value reported at 0.53. The average true range (ATR) is a technical analysis indicator that measures volatility by decomposing the entire range of an asset price for that period. A stock experiencing a high level of volatility has a higher ATR, and a low volatility stock has a lower ATR. The ATR may be used by market technicians to enter and exit trades, and it is a useful tool to add to a trading system. It was created to allow traders to more accurately measure the daily volatility of an asset by using simple calculations. The indicator does not indicate the price direction; rather it is used primarily to measure volatility caused by gaps and limit up or down moves. The ATR is fairly simple to calculate and only needs historical price data.

Technical Considerations

AT&T Inc. (T) stock positioned -1.06% distance from the 200-day MA and stock price situated -0.35% away from the 50-day MA while located 0.45% off of the 20-day MA.

RSI value sited with reading of 54.55. Relative Strength Index (RSI) is an extremely useful and popular momentum oscillator. The RSI compares the magnitude of a stock’s recent gains to the magnitude of its recent losses and turns that information into a number that ranges from 0 to 100. It takes a single parameter, the number of time periods to use in the calculation. In his book, Wilder recommends using 14 periods.

Observing the Technical Indicators:

AT&T Inc. institutional ownership is held at 53.70% while insider ownership was 0.08%. As of now, T has a P/S, P/E and P/B values of 1.20, 19.15 and 1.19 respectively. Its P/Cash is valued at 21.18. The Company’s net profit margin for the 12 months at 0. Comparatively, the gazes have a Gross margin 53.80%.

Profitability ratios:

Looking into the profitability ratios of T stock, an investor will find its ROE, ROA, ROI standing at 6.10%, 2.00% and 7.00%, respectively.

Earnings per Share Details of AT&T Inc.

The EPS of T is strolling at 1.52, measuring its EPS growth this year at -30.90%. As a result, the company has an EPS growth of -1.82% for the approaching year.

Given the importance of identifying companies that will ensure earnings per share at a tall rate, we later obsession to umpire how to identify which companies will achieve high amassing rates. One obvious showing off to identify high earnings per portion count together companies are to locate companies that have demonstrated such build up beyond the p.s. 5 to 10 years.

The payout ratio shows the proportion of earnings paid out as dividends to shareholders, typically expressed as a percentage of the company’s earnings. The payout ratio can also be expressed as dividends paid out as a proportion of cash flow. The payout ratio is also known as the dividend payout ratio. The Company’s payout ratio was 136.00% and Price to free cash flow remained $15.88.

Brad Larson

About Brad Larson

This is Brad Larson and I like to introduce myself as an adviser, in the “Earnings Review”. I worked independently as a self motivator and with the financial institute as financial adviser to invest in the Earnings sector for over 9 years in the developing countries by introducing new phases and ways to improve in the Earnings sector.I specialize in market indices, currency pairs, and commodities, rarely trading individual stocks. I accomplished my Post-Graduate degree in Business Administration with a specialization in Finance from International School of Business and Media (ISB&M). I like to travel all over the globe to get new experience and provide by best services to the companies. As an adviser I like to work with new people to share and explore new ideas keeping in view minimizing the operating cost and giving the best final product through new technology and minimizing the time of development.

View all posts by Brad Larson →