AT&T Earnings: Here’s Why the Stock is Down Now

AT&T, Inc. (NYSE:T) delivered a profit and met Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 2.36%.

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AT&T, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 6.67% to $0.64 in the quarter versus EPS of $0.60 in the year-earlier quarter.

Revenue: Decreased 1.46% to $31.36 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: AT&T, Inc. reported adjusted EPS income of $0.64 per share. By that measure, the company missed the mean analyst estimate of $0.64. It missed the average revenue estimate of $31.74 billion.

Quoting Management: “Our wireless network performance continues to be terrific,” said Randall Stephenson, AT&T chairman and CEO. “And that helped drive our best ever first quarter for smartphone sales, improved wireless churn and strong growth in mobile data revenues. We also posted record sales of our U-verse high-speed IP service. Across all of these areas, we’ve built a solid foundation for future growth in mobile Internet and IP broadband, which will only expand as we progress with Project VIP.”

Key Stats (on next page)…

Revenue decreased 3.75% from $32.58 billion in the previous quarter. EPS increased 45.45% from $0.44 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.69 to a profit $0.71. For the current year, the average estimate has moved up from a profit of $2.52 to a profit of $2.53 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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