AT&T Earnings Imminent

S&P 500 (NYSE:SPY) component AT&T (NYSE:T) will unveil its latest earnings on Wednesday, October 24, 2012. 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 profit of 61 cents per share, no change from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 63 cents. Between one and three months ago, the average estimate moved up. It has dropped from 64 cents during the last month. Analysts are projecting profit to rise by 8.2% versus last year to $2.38.

Past Earnings Performance: The company has beaten estimates the last two quarters and is coming off a quarter where it topped the forecasts by 3 cents, reporting net income of 66 cents per share against a mean estimate of profit of 63 cents. In the first quarter, the company exceeded forecasts by 3 cents with net income of 60 cents versus a mean estimate of profit of 57 cents.

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A Look Back: In the second quarter, profit rose 8.7% to $3.9 billion (66 cents a share) from $3.59 billion (60 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 0.3% to $31.57 billion from $31.5 billion.

Stock Price Performance: Between September 20, 2012 and October 18, 2012, the stock price dropped $1.92 (-5.1%), from $37.94 to $36.02. The stock price saw one of its best stretches over the last year between January 27, 2012 and February 7, 2012, when shares rose for eight straight days, increasing 3% (+88 cents) over that span. It saw one of its worst periods between October 4, 2012 and October 15, 2012 when shares fell for eight straight days, dropping 8.2% (-$3.13) over that span.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.64 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.

Key Stats:

On the top line, the company is looking to build on three-straight revenue increases heading into this earnings announcement. Revenue increased 3.6% in the fourth quarter of the last fiscal year and 1.8% in the first quarter before climbing again in the second quarter.

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 rise of 0.3% in revenue from the year-earlier quarter to $31.57 billion.

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

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