Is it possible that shares of AT&T Inc. (NYSE: T) are trying to form a bottom? After three years of going nowhere, investors cheered the telecom and wireless giant’s latest earnings. Also, AT&T addressed its potential to acquire DirecTV (NASDAQ: DTV).
24/7 Wall St. could not help but notice the gain of better than 4% following the report. However, what really stood out was some of the analyst commentary after the earnings report. Included in the summary here are a couple of analysts’ calls in relation to AT&T earnings and a summary of details from each call.
The telecom giant posted adjusted diluted quarterly earnings per share (EPS) of $0.63 on revenues of $32.6 billion. In the same period a year ago, the company reported EPS of $0.71 on revenues of $32.48 billion. First-quarter results also compare to the consensus estimates for EPS of $0.62 on revenues of $32.84 billion.
The company said only that “full-year standalone guidance” was “on track,” but did not offer any specific numbers. The consensus estimates for the second quarter call for EPS of $0.63 on revenues of $32.99 billion. For the full year, estimated EPS totals $2.50 on revenues of $134.29 billion.
After earnings, S&P Capital IQ said of AT&T:
We raise our 2015 operating EPS estimate by $0.01 to $2.53 and 2016’s by $0.04 to $2.59. We trim our 12-month target price by $2 to $39, on lower revised enterprise value-to-EBITDA near peers. AT&T posts first quarter operating EPS of $0.63 vs. $0.71, beating our $0.62 estimate.
Sales rose fractionally, as higher wireless revenue offset wireline declines. We positively view 1.2 million wireless subscriber addition (includes 441K postpaid and 684K connected cars) and 20% U-verse growth. We are optimistic about potential synergies (up to $2.5 billion from $1.6 billion) from the pending DirecTV deal.
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