AT&T Earnings Cheat Sheet: Revenue Sees Decline After Four Consecutive Quarters of Increases, Net Income Falls

S&P 500 (NYSE:SPY) component AT&T Inc. (NYSE:T) reported its results for the third quarter. 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.

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AT&T Earnings Cheat Sheet for the Third Quarter

Results: Net income for the telecom services company fell to $3.62 billion (61 cents per share) vs. $12.34 billion ($2.07 per share) a year earlier. This is a decline of 70.6% from the year earlier quarter.

Revenue: Fell 0.3% to $31.48 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: T fell in line with the mean analyst estimate of 61 cents per share. Analysts were expecting revenue of $31.62 billion.

Quoting Management: “Mobile broadband growth continues to be robust, execution was strong across the business, and we delivered another solid quarter,” said Randall Stephenson, AT&T chairman and chief executive officer. “Smartphones, connected devices and tablets all posted impressive gains. Our first LTE 4G markets are up and running with terrific speeds. And we continue to work toward a successful completion of our planned T-Mobile USA merger. The next waves in the mobile Internet revolution represent tremendous growth potential, and we are laying the groundwork required for that future.”

Key Stats:

A year-over-year revenue decrease last quarter snaps a streak of four consecutive quarters of revenue increases. The best quarter in that span was the third quarter of the last fiscal year, which saw revenue rise 2.4%.

The company has now seen net income fall in each of the last two quarters. In the second quarter, net income fell 10.7% from the year earlier quarter.

The company fell in line with estimates last quarter after beating forecasts in the previous quarter with net income of 60 cents versus a mean estimate of net income of 59 cents per share.

Looking Forward: Over the past sixty days, the outlook for the company’s performance next quarter has become increasingly unfavorable. The average estimate for the fourth quarter is 58 cents per share, a drop from 59 cents. For the fiscal year, the average estimate has moved up from $2.36 a share to $2.38 over the last ninety days.

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).

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(Source: Xignite Financials)

 

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