AT&T Inc’s Investor Day Takeaways

AT&T Inc. (NYSE:T) shares rose more than 5% intra-day today after the company delivered stronger-than-expected fourth-quarter results, fueled by a robust increase in monthly bill-paying wireless subscribers, underscoring sustained demand for its premium unlimited plans. The telecom giant reported 482,000 net monthly paying wireless phone subscribers, surpassing the Street projection of 441,511.

AT&T reaffirmed its long-term growth strategy outlined during its investor day last year. The Dallas-based telecom leader aims to double its fiber internet availability and expand its 5G network footprint. By leveraging bundled discounts on fiber internet and wireless services, AT&T seeks to further enhance its customer base and market position.

For fiscal year 2025, the company projects adjusted core income growth of at least 3%. Excluding its interest in DirecTV, which is being sold to TPG Capital for $7.6 billion, AT&T anticipates generating more than $16 billion in free cash flow during the year. The firm plans to initiate share buybacks in the second half of 2025 as part of its broader capital return program, which aims to deliver over $40 billion to shareholders through dividends and repurchases over the next three years.

In the fourth quarter, adjusted earnings per share reached $0.54, exceeding analysts’ expectations of $0.50. Revenue rose 0.9% year-over-year to $32.3 billion, buoyed by stronger-than-expected performance in its mobility unit. This result also topped Wall Street’s estimate of $32.03 billion.

AT&T Inc. (NYSE:T) shares rose more than 5% intra-day today after the company delivered stronger-than-expected fourth-quarter results, fueled by a robust increase in monthly bill-paying wireless subscribers, underscoring sustained demand for its premium unlimited plans. The telecom giant reported 482,000 net monthly paying wireless phone subscribers, surpassing the Street projection of 441,511.

AT&T reaffirmed its long-term growth strategy outlined during its investor day last year. The Dallas-based telecom leader aims to double its fiber internet availability and expand its 5G network footprint. By leveraging bundled discounts on fiber internet and wireless services, AT&T seeks to further enhance its customer base and market position.

For fiscal year 2025, the company projects adjusted core income growth of at least 3%. Excluding its interest in DirecTV, which is being sold to TPG Capital for $7.6 billion, AT&T anticipates generating more than $16 billion in free cash flow during the year. The firm plans to initiate share buybacks in the second half of 2025 as part of its broader capital return program, which aims to deliver over $40 billion to shareholders through dividends and repurchases over the next three years.

In the fourth quarter, adjusted earnings per share reached $0.54, exceeding analysts’ expectations of $0.50. Revenue rose 0.9% year-over-year to $32.3 billion, buoyed by stronger-than-expected performance in its mobility unit. This result also topped Wall Street’s estimate of $32.03 billion.

AT&T Inc. (NYSE:T) is a major player in the telecommunications industry, providing a wide range of services including wireless communications, broadband, and digital entertainment. The company competes with other giants like Verizon and T-Mobile in the U.S. market. Despite facing challenges, AT&T remains a significant force in the industry due to its extensive network and customer base.

In recent performance, AT&T's stock has seen a slight decline of 0.89% over the past 30 days. This modest dip suggests that the stock may be poised for a rebound. The more pronounced 4.02% drop in the last 10 days could be an opportunity for investors to buy as the stock nears a local minimum, potentially setting the stage for future gains.

AT&T's growth potential is underscored by a projected stock price increase of 4.59%. This indicates that the stock might be undervalued at its current price, with room for upward correction. Analysts have set a target price of $23.83, reflecting confidence in the stock's ability to recover and grow beyond its current levels, making it an attractive option for investors.

The company's strong fundamentals are highlighted by a Piotroski Score of 8, which signals robust financial health. This score takes into account various factors such as profitability, leverage, liquidity, and operating efficiency. Such a high score suggests that AT&T is well-positioned to maintain its financial stability and continue its growth trajectory.

Overall, AT&T Inc. (NYSE:T) offers a compelling investment opportunity, especially for those looking to benefit from its recent price dip and solid fundamentals. The combination of a high Piotroski Score and significant growth potential makes it a stock worth considering for both short-term gains and long-term investment strategies.

AT&T Inc. (NYSE:T) is a major player in the telecommunications industry, providing a wide range of services including wireless communications, broadband, and digital entertainment. The company competes with other giants like Verizon and T-Mobile in the U.S. market. Despite facing challenges, AT&T remains a significant force in the industry due to its extensive network and customer base.

In recent performance, AT&T's stock has seen a slight decline of 0.89% over the past 30 days. This modest dip suggests that the stock may be poised for a rebound. The more pronounced 4.02% drop in the last 10 days could be an opportunity for investors to buy as the stock nears a local minimum, potentially setting the stage for future gains.

AT&T's growth potential is underscored by a projected stock price increase of 4.59%. This indicates that the stock might be undervalued at its current price, with room for upward correction. Analysts have set a target price of $23.83, reflecting confidence in the stock's ability to recover and grow beyond its current levels, making it an attractive option for investors.

The company's strong fundamentals are highlighted by a Piotroski Score of 8, which signals robust financial health. This score takes into account various factors such as profitability, leverage, liquidity, and operating efficiency. Such a high score suggests that AT&T is well-positioned to maintain its financial stability and continue its growth trajectory.

Overall, AT&T Inc. (NYSE:T) offers a compelling investment opportunity, especially for those looking to benefit from its recent price dip and solid fundamentals. The combination of a high Piotroski Score and significant growth potential makes it a stock worth considering for both short-term gains and long-term investment strategies.

Citi analysts maintained a Buy rating for AT&T (NYSE:T) with a price target of $24 on the stock. The bank highlighted the upcoming analyst meeting on December 3 as a potential positive catalyst, where AT&T could outline updates to its long-term strategy, financial outlook, and capital allocation plans.

The analysts anticipate that AT&T will continue its strong expansion of its fiber footprint and might introduce a multi-year share repurchase program, estimated at around $20-30 billion over the next four years. Additionally, they expect AT&T to maintain financial flexibility, positioning the company for potential spectrum acquisitions and further investments in inorganic fiber growth.

Citi analysts maintained a Buy rating for AT&T (NYSE:T) with a price target of $24 on the stock. The bank highlighted the upcoming analyst meeting on December 3 as a potential positive catalyst, where AT&T could outline updates to its long-term strategy, financial outlook, and capital allocation plans.

The analysts anticipate that AT&T will continue its strong expansion of its fiber footprint and might introduce a multi-year share repurchase program, estimated at around $20-30 billion over the next four years. Additionally, they expect AT&T to maintain financial flexibility, positioning the company for potential spectrum acquisitions and further investments in inorganic fiber growth.

AT&T (NYSE:T) is a major player in the U.S. telecommunications industry, competing with giants like Verizon and T-Mobile. The company offers a range of services, including wireless, broadband, and entertainment. On October 23, 2024, AT&T reported its third-quarter earnings, revealing an earnings per share (EPS) of $0.60, which exceeded the estimated $0.569.

Despite surpassing EPS expectations, AT&T's revenue of $30.21 billion fell short of the estimated $30.45 billion. This revenue figure also represents a slight decline from the $30.35 billion reported in the same quarter last year. The company has only exceeded consensus revenue estimates once in the past four quarters, highlighting a challenge in meeting revenue expectations.

AT&T's earnings surprise of 1.69% in the third quarter contrasts with the previous quarter's negative surprise of 1.72%. Over the last four quarters, AT&T has exceeded consensus EPS estimates twice, demonstrating some consistency in outperforming earnings expectations. However, the EPS of $0.60 is a decrease from the $0.64 reported in the same quarter last year.

The company has seen success in its wireless segment, adding 403,000 net monthly bill-paying wireless phone subscribers, surpassing the Visible Alpha forecast of 393,430. This growth is attributed to the popularity of its premium unlimited plans, which offer enhanced benefits. This positive performance has contributed to a 3.1% rise in AT&T's share price during premarket trading.

AT&T's financial metrics provide insight into its market valuation and financial health. With a price-to-earnings (P/E) ratio of approximately 12.44 and a price-to-sales ratio of about 1.29, the market's valuation of its earnings and sales is evident. The company's debt-to-equity ratio of approximately 1.24 indicates a significant reliance on debt financing, while a current ratio of around 0.58 suggests potential liquidity challenges.