Dallas, Texas-based AT&T Inc. (T) provides telecommunications and technology services worldwide. Valued at $207.8 billion by market cap, the company provides local and long-distance phone, wireless and data communications, Internet access and messaging, IP-based and satellite television, telecommunications equipment, and directory advertising and publishing services. The telecom giant is expected to announce its fiscal second-quarter earnings for 2025 before the market opens on Wednesday, Jul. 23.
Ahead of the event, analysts expect T to report a profit of $0.51 per share on a diluted basis, down 10.5% from $0.57 per share in the year-ago quarter. The company beat the consensus estimates in two of the last four quarters while missing the forecast on two other occasions.
For the full year, analysts expect T to report EPS of $2.03, down 10.2% from $2.26 in fiscal 2024. However, its EPS is expected to rise 10.3% year over year to $2.24 in fiscal 2026.
T stock has outperformed the S&P 500 Index’s ($SPX) 13% gains over the past 52 weeks, with shares up 50.4% during this period. Similarly, it outperformed the Communication Services Select Sector SPDR ETF’s (XLC) 24.9% uptick over the same time frame.
AT&T's strong performance is driven by its strategic investments in fiber optic and 5G networks, which are crucial for future growth. As a result, the company has seen significant gains, including 324,000 postpaid phone net adds and 261,000 new fiber customers. With initiatives like bundling fiber internet with 5G wireless and edge computing services, AT&T is poised for continued success and aims to gain a competitive edge. The acquisition of Lumen's fiber business and partnership with Ericsson will likely further enhance its market reach and capabilities.
On Apr. 23, T shares closed up marginally after reporting its Q1 results. Its adjusted EPS of $0.51 fell short of Wall Street expectations of $0.52. The company’s revenue was $30.6 billion, beating Wall Street forecasts of $30.4 billion. T expects full-year adjusted EPS in the range of $1.97 to $2.07.
Analysts’ consensus opinion on T stock is moderately bullish, with a “Moderate Buy” rating overall. Out of 28 analysts covering the stock, 17 advise a “Strong Buy” rating, three suggest a “Moderate Buy,” seven give a “Hold,” and one advocates a “Strong Sell.” T’s average analyst price target is $29.29, indicating a potential upside of 3.5% from the current levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
