AT&T, Inc. Second Quarter Earnings Preview

S&P 500 (NYSE:SPY) component AT&T, Inc. (NYSE:T) will unveil its latest earnings on Thursday, July 21, 2011. AT&T Inc. is a holding company whose subsidiaries and affiliates provides 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. Apple Inc. Earnings Cheat Sheet: Earnings Higher Than Expected>>

AT&T, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 59 cents per share, a decline of 3.3% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 60 cents. Between one and three months ago, the average estimate moved down, but it has been unchanged at 59 cents during the last month. For the year, analysts are projecting net income of $2.36 per share, a rise of 3.1% from last year.

Past Earnings Performance: The company fell in line with estimates last quarter after topping forecasts the quarter before. After coming in above the mean estimate by one cent in the fourth quarter of the last fiscal year, the company fell in line with expecations by reporting profit of 57 cents per share last quarter.

Savvy Investing Tip: Our CHEAT SHEET investing framework recommends only stocks with two straight quarters of earnings growth. Learn More >>

Wall St. Revenue Expectations: On average, analysts predict $31.33 billion in revenue this quarter, a rise of 1.7% from the year ago quarter. Analysts are forecasting total revenue of $125.8 billion for the year, a rise of 1.2% from last year’s revenue of $124.28 billion.

Analyst Ratings: Analysts are bullish on this stock with 15 analysts rating it as a buy, none rating it as a sell and 13 rating it as a hold.

Key Stats:

Revenue has risen the past four quarters. Revenue increased 2% to $31.25 billion in first quarter. The figure rose 1.6% in the fourth quarter of the last fiscal year from the year earlier, climbed 2.4% in the third quarter of the last fiscal year from the year-ago quarter and 0.2% in the second quarter of the last fiscal year.

The increase in profit in the first quarter comes after net income fell in the previous quarter. In the first quarter, net income rose 37.7% to $3.41 billion. In the fourth quarter of the last fiscal year, net income fell 66%.

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).

Stock Price Performance: During July 11, 2011 to July 20, 2011, the stock price had dropped 57 cents (-2%) from $30.80 to $30.23. The stock price saw one of its best stretches over the last year between October 26, 2010 and November 4, 2010 when shares rose for eight-straight days, rising 4% (+$1.08) over that span. It saw one of its worst periods between May 31, 2011 and June 7, 2011 when shares fell for six-straight days, falling 4% (-$1.23) over that span. Shares are up 85 cents (+2.89%) year to date.

(Source: Xignite Financials)

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