AT&T Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component AT&T (NYSE:T) will unveil its latest earnings tomorrow, Thursday, January 24, 2013. AT&T is a holding company whose subsidiaries and affiliates provide wireless and wireline telecommunications services and products to consumers and businesses worldwide. It also provides directory advertising and publishing services in the United States and international markets.

AT&T Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 48 cents per share, a rise of 14.3% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 50 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 48 cents during the last month. For the year, analysts are projecting profit of $2.37 per share, a rise of 7.7% from last year.

Past Earnings Performance: Last quarter, the company reported net income of 62 cents per share versus a mean estimate of profit of. The company has beaten estimates for the past three quarters.

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Here’s how AT&T traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

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Analyst Ratings: There are mostly holds on the stock with 20 of 30 analysts surveyed giving that rating.

Wall St. Revenue Expectations: Analysts are projecting a decline of 1.1% in revenue from the year-earlier quarter to $32.14 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.62 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, a ratio less than one could indicate a company may have difficulty meeting current obligations. The company regressed in this liquidity measure from 0.64 in the second quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 3.7% to $30.8 billion while assets decreased 1% to $18.96 billion.

Key Stats:

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 3.6% in the fourth quarter of the last fiscal year, 1.8% in the first quarter and 0.3%in the second quarter before dropping in the third quarter.

A Look Back: In the third quarter, profit rose 0.3% to $3.63 billion (63 cents a share) from $3.62 billion (61 cents a share) the year earlier, exceeding analyst expectations. Revenue remained stable at $31.46 billion.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)