The American multinational telecommunications conglomerate AT&T is scheduled to report its earnings report for the fiscal quarter ending March 2017. The stock had a tight range for the first three months of the year, sending mixed outlook on its financial data in the said period. During the last quarter, the AT&T Inc. remained relatively flat even after the earnings expectation. Here’s a glimpse of the company’s stock and expected financial performance in the first quarter of 2017.
In the fourth quarter of 2016, the Company reported $41.8 billion revenue and $0.66 earnings per share, surpassing the estimated $0.63 EPS. The operating income was $4.2 billion while the cash operations came at $10.1 billion. There was $2.4 billion net income attributable to At&T.
AT&T acquired $2.8 wireless net adds, basically 1.5 million from the United States and 1.3 million from Mexico. There was nearly 400 million North American 4G LTE POPs and 235,000 U.S. DIRECTV satellite net adds with stable linear TV subscriber base.
What to Expect
As indicated in the company’s 2017 guidance, the EPS is expected to grow in the mid-single digit range and consolidated revenue to come in the low-single digits. AT&T is anticipating $166.57 billion and EPS of $2.96 for the entire year.
Prior to this, the first quarter performance of the Company matters, for it sets the market player’s outlook in the coming months. Back up by strong customer growth, AT&T is expected to have revenue between $39 billion and $41 billion while the EPS for the quarter will likely stand between $0.65 and $0.80.
Adding optimism for the stock, Zacks Investment Research also had high hopes for the company with a consensus EPS estimate of $0.74, a bit higher from the $0.72 for the same quarter last year and higher than the $0.66 in the previous quarter.
The impact of its streaming service, mobile and fixed networks, and the deal with Time Warner is expected in the first quarter.
After the New York Stock Exchange closes today, the holding company will release its earnings report. It will be followed by a conference call hosted by the AT&T to go in depth with the results. The $85 billion merger of the Company with the Time Warner remained risky in the eyes of the experts.
It was noted that the AT&T products and services are offered by the affiliates and subsidiaries of AT&T Incorporated under the AT&T brand and not by AT&T Inc. The Company specializes in entertainment, mobile, high speed internet and voice services with TV customers in the U.S. and 11 Latin American countries.
At the time of writing, the stock traded at $40.02, advancing 0.23 percent with a market capitalization of $243.64 billion. AT&T has a price earnings ratio of 19.07 and dividend yield of 4.90 percent. The 52-week low of the company was $36.10 while its 52-week high was 43.09. With the current level of the stock, it still steady in light of the figures mentioned.
Let’s take a look of the stock performance of At&T in the fourth quarter of 2016 and its movement in the first three months of 2017. The stock performed better in the first quarter of 2017 as it traded between 40.00 and 43.00 levels, despite the tight range. On the other hand, the fourth quarter stock performance of the company slid at 36.00 levels, although it managed to move near 43.00 levels.
The stock movement will definitely influence the financial result of the company. However, the reaction of the market players will depend on the figures coming out later today. The stock is expected to gain investors’ enthusiasm if the numbers come strong, conversely, the momentum will fall, if the numbers disappoint.