Can AT&T Catch Up With Q3 Earnings?

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AT&T Inc. (NYSE: T) is scheduled to release its most recent quarterly results after the markets close on Tuesday. Verizon and T-Mobile have already posted results and as both were fairly positive, one would think that this might bode well for the industry in general and AT&T. However, AT&T shares have hit a new 52-week low ahead of these results.

Out of the major telecom group, AT&T ranks third in terms of its stock’s performance over the course of 2017 (−17%), and last in terms of its performance over the past 52 weeks (−6%).

AT&T has the second-biggest wireless carrier market share in the United States through the second quarter at 33.13%, behind Verizon at 35.74%, according to statistics portal Statista.

Keep in mind that Sprint and T-Mobile are reportedly in merger talks that could threaten this industry. As for the combined company, analysts are thinking that it could unlock roughly 40% returns.

As for AT&T, earlier this month the company said storms such as hurricanes and events like the earthquake in Mexico will decrease its third-quarter consolidated revenues by $90 million and its pretax earnings by about $210 million, or two cents a diluted share. The company also warned investors to expect more pain in the next quarter. “We expect further reductions in the fourth quarter as we continue to assess damage to our network and fully restore service,” the company said in the filing.

Looking ahead to the earnings, Thomson Reuters has consensus estimate of $0.75 in earnings per share (EPS) and $40.12 billion in revenue. The same period of last year reportedly had EPS of $0.74 and $40.89 billion in revenue.

A few analysts weighed in on AT&T ahead of the earnings report:

  • Moffett Nathanson has a Neutral rating.
  • KeyCorp has a Hold rating.
  • Morgan Stanley has an Equal Weight rating with a $48 price target.
  • Robert Baird has an Outperform rating with a $43 price target.
  • Macquarie has a Buy rating with a $43 price target.

Shares of AT&T were last seen down 1% at $34.90, with a consensus analyst price target of $41.03 and a 52-week range of $34.88 to $43.03.