AT&T Inc. and Time Warner Cable Inc. Stocks Search for New Direction Following Earnings

AT&T Inc. (NYSE:T) in the fourth quarter as the company reversed to a loss. Reported a loss of $6.68 billion ($1.12 per diluted share) in the quarter. AT&T Inc. had a net income of $1.03 billion or 18 cents per share in the year earlier quarter. Revenue rose 3.6% to $32.5 billion from the year earlier quarter. T reported adjusted net income of 42 cents per share. By that measure, the company fell short of mean estimate of 43 cents per share. Analysts were expecting revenue of $31.95 billion.

“We had a tremendous year in terms of execution, and we have excellent momentum across our growth platforms,” said Randall Stephenson, AT&T chairman and chief executive officer. “This was a blowout quarter for smartphone sales. Our network performance is at a high level on voice quality and best-in-class mobile download speeds. U-verse sales continue to be strong and business revenue trends are on a good track.”

“Looking ahead, we start 2012 with the best visibility we’ve had in some time, and we’re well positioned to deliver solid results – including continued revenue growth with margin expansion, solid earnings per share growth and strong cash flow,” Stephenson said. “In short order, we will begin share repurchases to deliver significant value to our owners.”

Competitors to Watch: Verizon Communications Inc. (NYSE:VZ), Sprint Nextel Corporation (NYSE:S), CenturyLink, Inc. (NYSE:CTL), General Communication, Inc. (NASDAQ:GNCMA), Cbeyond, Inc. (NASDAQ:CBEY), MetroPCS Communications, Inc. (NYSE:PCS), Cincinnati Bell Inc. (NYSE:CBB), PAETEC Holding Corp. (NASDAQ:PAET), and Frontier Communications Corp (NYSE:FTR).

Time Warner Cable Inc. (NYSE:TWC) reported net income above Wall Street’s expectations for the fourth quarter. Net income for the cable company rose to $564 million ($1.75 per share) vs. $392 million ($1.09 per share) in the same quarter a year earlier. This marks a rise of 43.9% from the year earlier quarter. Revenue rose 4% to $4.99 billion from the year earlier quarter. TWC beat the mean analyst estimate of $1.21 per share. Analysts were expecting revenue of $4.97 billion.

Time Warner Cable Chief Executive Officer Glenn Britt said: “Time Warner Cable’s 2011 results demonstrate the continued strength of our business amidst rapid change in technology and the consumer marketplace. We have a full slate of strategic and operational initiatives planned for the year ahead, all designed to generate strong cash flow, enable future growth and provide attractive returns to our shareholders.”

Competitors to Watch: Comcast Corporation (NASDAQ:CMCSA), Cablevision Systems Corp. (NYSE:CVC), Mediacom Communications Corp. (NASDAQ:MCCC), Time Warner Inc. (NYSE:TWX), AT&T Inc. (NYSE:T), DISH Network Corp. (NASDAQ:DISH), Charter Communications, Inc. (NASDAQ:CHTR), Verizon Communications Inc. (NYSE:VZ), DIRECTV (NASDAQ:DTV), and China Cablecom Hldgs. Ltd. (NASDAQ:CABL).

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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