With a market cap of $192.6 billion, AT&T Inc. (T) provides telecommunications and technology services worldwide. Founded in 1983, the Dallas, Texas-based company operates through two segments, Communications and Latin America. T offers wireless voice and data communications services, as well as wireless data cards, wireless computing devices, and more.
The communication services giant is expected to report its Q1 earnings on Wednesday, Apr. 23, before the market opens. Ahead of the event, analysts expect T to report an EPS of $0.50 per share, down 9.1% from $0.55 per share reported in the year-ago quarter. It has exceeded analysts' earnings estimates in three of the past four quarters.
Its adjusted EPS of $0.54 in the recent quarter surpassed analysts’ expectations by 12.5%, driven by a solid momentum in gaining and retaining profitable 5G and fiber subscribers.
For fiscal 2025, analysts expect T to report an adjusted EPS of $2.10, down 7.1% from $2.26 in fiscal 2024. In fiscal 2026, its adjusted EPS is expected to grow 7.6% year-over-year to $2.26.
T stock has soared 53% in the past 52 weeks, significantly outperforming the S&P 500 Index’s ($SPX) 4.2% fall and the Communication Services Select Sector SPDR ETF Fund’s (XLC) 4.4% surge during the same time frame.
T stock declined more than 1% on Apr. 7 after Citigroup Inc. (C) cut the stock from its Focus List, citing valuation due to its recent outperformance. While the telecom giant has shown relative strength in recent weeks, analysts at Citi believe the stock’s upside may now be limited in the near term, prompting the downgrade.
The consensus opinion on T stock is moderately optimistic, with an overall “Moderate Buy” rating. Out of the 28 analysts covering the stock, 17 recommend a “Strong Buy,” three suggest a “Moderate Buy,” seven suggest a “Hold” rating and one suggests a “Strong Buy.”. Its mean price target of $28.02 indicates a 6.2% upside potential from current price levels.
