Group 1 - AT&T reported strong earnings that exceeded estimates, reaffirmed its 2025 outlook, and provided updates on debt reduction and share buyback plans [1] - The company has focused on reducing debt, particularly from past media acquisitions, with the final piece being the sale of its remaining DirecTV stake [2] - AT&T expects to have over $50 billion available over the next three years from free cash flow and the DirecTV sale, supporting its current quarterly dividend of $0.2775, yielding approximately 4.6% [3] Group 2 - Instead of increasing dividends, AT&T plans to allocate $20 billion for share repurchases by the end of 2027, with an additional $10 billion reserved for various potential uses [4] - Share buybacks are set to begin in the second half of the year once the net debt-to-adjusted EBITDA ratio reaches the target of 2.5 [5] - The capital allocation strategy prioritizes buybacks over dividend increases, which may disappoint some dividend investors but could enhance per-share earnings [6] Group 3 - AT&T's market valuation is around $170 billion, and the planned $20 billion in buybacks could reduce the share count by nearly 12% and increase per-share earnings by close to 14% [7] - The stock has risen approximately 40% over the past year, with expectations for continued growth in free cash flow from $16 billion this year to $18 billion by 2027, driven by wireless and fiber business growth and cost-cutting measures [8] - The share buybacks are expected to boost per-share free cash flow at a faster rate than total free cash flow, potentially leading to significant stock gains if valuation ratios improve [9]

Earnings Performance - AT&T reported better-than-expected earnings for the fourth quarter, driven by strong free cash flow and healthy subscriber momentum in the core broadband business [1] - The company also saw sequential improvements in fiber average revenue per user, which is a key performance indicator [1] Portfolio Focus - The analyst's portfolio is focused on high-risk, high-reward situations, primarily in the technology markets [1] - The portfolio includes early investments in Bitcoin and is concentrated in companies with asymmetric long-term upside potential [1] - Top holdings in the portfolio include Bitcoin, Tesla, Google, Amazon, and Nvidia [1] Analyst's Position - The analyst holds a beneficial long position in AT&T (T) and Verizon (VZ) through stock ownership, options, or other derivatives [2]

Oil & Gas Industry Analysis - The oil and gas industry is described as a boom-bust, cyclical industry that requires patience and experience to navigate effectively [2] - Long Player, an experienced analyst, has been focusing on the oil and gas industry for years, leveraging his background as a retired CPA and holder of an MBA and MA [2] AT&T Earnings Announcement - AT&T announced its fourth quarter earnings, which were perceived as a pleasant surprise by the market compared to expectations [2] - Management had consistently communicated throughout the year that they were on track to meet their targets [2] Oil & Gas Value Research Service - The Oil & Gas Value Research service focuses on identifying undervalued companies in the oil and gas sector [1] - The service provides detailed analysis of companies, including their balance sheets, competitive positions, and development prospects [1] - Members of the service receive exclusive analysis on certain companies that is not published on the free site [1]

Group 1 - The primary goal of the Cash Flow Kingdom Income Portfolio is to achieve an overall yield in the range of 7% to 10% by combining various income streams for a steady portfolio payout [1] - AT&T Inc. has reported strong Q4 earnings results that exceeded estimates and announced plans to increase investments in AI while returning significant cash to shareholders [1] - The Cash Flow Club focuses on company cash flows and access to capital, offering features such as a personal income portfolio targeting over 6% yield and coverage of various sectors including energy midstream and commercial mREITs [1]

Group 1 - AT&T Inc. experienced a significant increase in share price, rising by 6.3% on January 27th following the announcement of its financial results for the final quarter [1] - The positive market reaction indicates strong investor confidence in AT&T's performance and future prospects [1] Group 2 - The financial results released by AT&T highlight the company's operational efficiency and potential for growth in the telecommunications sector [1]

Core Viewpoint - AT&T reported strong fourth-quarter revenues and earnings, exceeding analyst expectations, driven by growth in wireless service revenues and effective cost management [1][4][6]. Financial Performance - Consolidated revenues grew by 0.9% year-on-year to $32.3 billion, surpassing the consensus estimate of $32.1 billion [4]. - Adjusted earnings per share (EPS) were 54 cents, exceeding the expected 49 cents [4]. - Wireless service revenues increased by 3%, supported by stable postpaid phone churn of 0.85% and ARPU growth of 0.9% [2]. Future Outlook - Management anticipates a $1.5 billion increase in cash taxes year-on-year to $3.3 billion, but expects free cash flows to benefit from lower interest expenses and working capital [5]. - Analysts predict that AT&T's annual revenue growth will return to positive in fiscal 2025, with a modest acceleration in EBITDA growth due to improved cost-saving measures [7]. - The company is expected to continue normalizing U.S. volumes in 2025, with pricing actions and higher-priced plan adoption likely to boost ARPU [3]. Market Position and Analyst Ratings - AT&T Fiber achieved 40% penetration in homes passed with fiber and among fiber customers bundling wireless services [8]. - Analysts have maintained positive ratings, with price targets raised: Scotiabank from $24 to $26, RBC from $26 to $27, and Oppenheimer maintaining a target of $27 [10]. - Raymond James reaffirmed a Strong Buy rating with a price target of $28, highlighting AT&T as a strong total return story over the next 12 months [8][10].

Core Viewpoint - The article discusses the reliability of Wall Street analysts' recommendations, particularly focusing on AT&T (T), and highlights the potential misalignment of brokerage firms' interests with retail investors [1][4][9]. Group 1: Brokerage Recommendations for AT&T - AT&T has an average brokerage recommendation (ABR) of 1.80, indicating a consensus between Strong Buy and Buy, based on 28 brokerage firms [2]. - Out of the 28 recommendations, 16 are classified as Strong Buy, while 3 are classified as Buy, representing 57.1% and 10.7% of total recommendations respectively [2]. Group 2: Limitations of Brokerage Recommendations - Solely relying on brokerage recommendations for investment decisions may not be advisable, as studies indicate they often fail to guide investors effectively towards stocks with high price appreciation potential [4][9]. - Brokerage analysts tend to exhibit a positive bias in their ratings due to vested interests, leading to a disproportionate number of favorable ratings compared to negative ones [5][9]. Group 3: Zacks Rank as an Alternative - The Zacks Rank, a proprietary stock rating tool, categorizes stocks from Strong Buy to Strong Sell and is based on earnings estimate revisions, which have shown a strong correlation with near-term stock price movements [7][10]. - The Zacks Rank is updated more frequently than the ABR, making it a more timely indicator for predicting future stock prices [11]. Group 4: Current Earnings Estimates for AT&T - The Zacks Consensus Estimate for AT&T's current year earnings has decreased by 3% over the past month to $2.12, reflecting analysts' growing pessimism about the company's earnings prospects [12]. - This decline in earnings estimates has contributed to a Zacks Rank of 5 (Strong Sell) for AT&T, suggesting caution despite the favorable ABR [13].

Telecom giant AT&T (T -0.37%) beat expectations on all fronts when it reported its fourth-quarter results on Monday. There was a lot for investors to like. The company hit or exceeded all its full-year targets, with mobility service revenue up 3.5%, broadband revenue up 7.2%, and free cash flow of $17.6 billion. AT&T also reiterated its 2025 guidance, which it first issued during its analyst day event last year.AT&T added 482,000 net postpaid phone subscribers during Q4, its best result since last year's Q4 ...

Amid a tech-sector selloff sparked by the emergence of Chinese startup DeepSeek and its free AI offering, AT&T (NYSE: T) defied the downturn on Monday, climbing 6% after delivering strong fourth-quarter results. The telecom giant emerged as one of the top gainers in the S&P 500, driven by solid growth in its wireless and broadband businesses.AT&T’s one-day stock price. Source: Google FinanceAs of the market close on January 27, AT&T shares were trading at $24.14, reflecting a six-month increase of 24%. The ...

Dividend sustainability concerns have weighed on AT&T (T 6.25%) in recent years. The telecom giant had previously cut its payout by nearly 50% in 2022 to retain additional cash to invest in its network and reduce debt. It took a while for that strategy to start paying off. However, the telecom company's financial metrics have improved considerably over the past year. It expects that trend to continue in 2025. Because of that, AT&T's dividend -- which yields 4.7% these days -- looks like a solid option for i ...