Core Viewpoint - Wall Street anticipates a year-over-year decline in AT&T's earnings despite higher revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - AT&T is expected to report quarterly earnings of $0.52 per share, reflecting a year-over-year decrease of 5.5% [3]. - Revenue projections stand at $30.44 billion, indicating a 1.4% increase from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised 0.63% higher in the last 30 days, indicating a reassessment by analysts [4]. - A positive Earnings ESP reading is generally a strong predictor of an earnings beat, particularly when combined with a favorable Zacks Rank [8]. Earnings Surprise Prediction - The Most Accurate Estimate for AT&T is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -6.28%, suggesting bearish sentiment among analysts [10][11]. - AT&T holds a Zacks Rank of 3, complicating predictions of an earnings beat [11]. Historical Performance - In the last reported quarter, AT&T exceeded expectations with earnings of $0.54 per share against an estimate of $0.48, achieving a surprise of +12.50% [12]. - Over the past four quarters, AT&T has beaten consensus EPS estimates three times [13]. Market Context - Verizon Communications, a competitor in the wireless industry, is expected to report earnings of $1.15 per share, unchanged from the previous year, with revenues projected at $33.32 billion, up 1% [17]. - Verizon's consensus EPS estimate has been revised 0.1% higher, resulting in a positive Earnings ESP of 0.10%, suggesting a likely earnings beat [18].

MIRAMAR, FLORIDA, April 16, 2025 (GLOBE NEWSWIRE) -- WMS, the leading global provider of cruise wireless connectivity, announces its latest step in delivering the world's most innovative services at sea in collaboration with AT&T. AT&T is enhancing its International Day PassTM for cruise passengers, ensuring seamless cellular connectivity between land and sea. With availability on more than 200 ocean-going cruise ships across over 25 cruise lines that WMS supports, travelers can enjoy reduced costs while ex ...

Group 1: Market Overview - Investors are seeking solid dividend stocks as market volatility returns, with some stocks offering yields significantly higher than the S&P 500 average of 1.44%, although some companies are struggling competitively [1] - The ideal scenario is to find high-yield stocks from strong companies that deliver solid financial results and show potential for share price appreciation [2] Group 2: Coca-Cola - Coca-Cola has a strong track record, having increased its dividend for 63 consecutive years, with a recent quarterly payment increase of 5% to $0.51, making it a low-risk option for boosting portfolio yield [3][6] - The company operates a capital-light business model, generating significant revenue from concentrate syrup, maintaining profit margins above 20% over the last five years [4] - Despite fluctuations in consumer spending, Coca-Cola's global unit case volume grew by 2% year-over-year in Q4 and is projected to grow by 1% in 2024, aided by effective marketing strategies [5] - The stock has appreciated by 20% over the past year, currently offering a forward dividend yield of 2.88%, with expected annualized earnings growth of 6%, leading to an anticipated average annual return of around 9% [6] Group 3: AT&T - AT&T, as a leading wireless service provider, has shown resilience during recessions, with shares climbing about 59% over the past year due to strong demand for wireless and internet services [7] - The company cut its dividend in 2022 to manage debt, currently maintaining a quarterly dividend of $0.2775, resulting in a forward yield of 4.2% while focusing on debt reduction and growth investments [8] - AT&T's debt has decreased from $177 billion in 2021 to $123 billion in 2024, while it has paid out less than half of its free cash flow in dividends over the past year [9] - The company reported 1.7 million postpaid phone net additions and 1 million AT&T Fiber net additions last year, aiming to maintain competitive pressure through quality service [10] - With over $17 billion in free cash flow generated on $122 billion of revenue last year, the 4.2% forward yield and management's growth outlook position AT&T as a strong income investment for 2025 and beyond [11]

Core Viewpoint - In turbulent market conditions, defensive stocks like AT&T are expected to outperform as investors seek safer investment options [1] Group 1: Company Analysis - AT&T is identified as a defensive stock that meets several criteria favorable for investment during market downturns [1] Group 2: Market Context - The article highlights the tendency of investors to gravitate towards safe harbors, similar to captains seeking refuge during storms, indicating a broader market trend towards defensive investments [1]

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Core Viewpoint - AT&T Inc. has significantly outperformed its peers and the industry over the past year, driven by strong growth in 5G services and fiber expansion, despite facing challenges from declining legacy services and competitive pressures [1][9]. Group 1: Stock Performance - AT&T's stock has increased by 58.8% over the past year, compared to a 35.7% rise in the industry [1]. - In comparison, Verizon Communications Inc. has gained 4.3%, while T-Mobile US, Inc. has surged by 53.2% [1]. Group 2: Growth Drivers - AT&T's customer-centric business model is supported by the deployment of mid-band spectrum and fiber densification, which is expected to enhance broadband connectivity for both enterprise and consumer markets [3]. - The company is committed to closing the digital divide, which aligns with its strategy to foster inclusive connectivity and socio-economic progress [3]. Group 3: 5G Network Development - AT&T is leveraging millimeter-wave spectrum for dense urban areas and mid- and low-band spectrum for suburban and rural areas, enhancing its 5G service capabilities [4]. - The company plans to modernize its 5G wireless network using Open RAN technology by 2027, aiming to cover over 300 million people with mid-band 5G spectrum by the end of 2026 [5]. Group 4: Edge Computing Solutions - AT&T anticipates gaining a competitive advantage through edge computing services, which will allow businesses to manage application-specific traffic more effectively [6]. - The Multi-access Edge Compute solution is designed to support low-latency, high-bandwidth applications, enhancing data processing capabilities [7]. Group 5: Challenges and Market Dynamics - Despite strong wireless growth, AT&T is experiencing a decline in legacy services, particularly in its wireline division, due to competition from VoIP providers and aggressive offerings from cable companies [9]. - The company faces margin pressures as it attempts to attract customers with discounts and promotions, which could impact its growth potential [9]. Group 6: Earnings Estimates - Earnings estimates for AT&T have been revised downwards, with a decline of 8.9% for 2025 to $2.14 and for 2026 to $2.26, indicating bearish sentiment towards the stock [11]. Group 7: Future Outlook - By investing in infrastructure and new technologies, AT&T is positioned to enhance connectivity and potentially achieve solid postpaid subscriber growth and higher average revenue per user in its Mobility Service business [12].

There's no such thing as a completely "safe" stock, but some stocks are less risky than others. That's particularly true during times of extreme uncertainty and volatility. The major stock indices have been in free fall since President Donald Trump announced sweeping tariffs last week, and there haven't been many places for investors to hide.Shares of telecom giant AT&T (T 0.66%) have dropped along with the broader stock market, but as this tariff story plays out in the coming weeks and months, AT&T could p ...

Core Viewpoint - The article emphasizes the potential of dividend stocks as attractive investments during bear markets, highlighting their ability to provide passive income and offset share price declines. Group 1: AT&T - Following asset sales, AT&T is better positioned to deliver dependable dividends, outperforming the S&P 500 index in 2025 [3][4] - The company has refocused on its core wireless and broadband businesses, divesting WarnerMedia and DirecTV, which allowed it to pay down debt and expand its 5G and fiber networks [4] - AT&T gained 1.7 million postpaid phone customers and 1 million fiber customers in 2024, marking its seventh consecutive year of adding over 1 million high-speed internet accounts [5] - The company plans to grow its fiber network to over 50 million locations by the end of the decade, with consumer fiber broadband revenue expected to rise by "mid-teens" percentages in 2025 [6] - AT&T forecasts free cash flow of over $16 billion in 2025, with projected dividend payments exceeding $20 billion over the next three years, yielding 3.9% [7] Group 2: Kinder Morgan - Kinder Morgan is positioned to benefit from the AI boom while providing substantial cash payouts to investors [8] - The company operates the largest natural gas transmission network in the U.S., with 66,000 miles of pipeline transporting about 40% of the country's gas [9] - Kinder Morgan's fee-based contracts help insulate its business from commodity price fluctuations, reducing risks for investors [10] - The company is expected to benefit from rising U.S. LNG exports, increasing natural gas demand in the industrial sector, and a projected 160% rise in data center power demand due to the AI boom by 2030 [10][12] - With a projected cash payout of $1.17 per share in 2025, Kinder Morgan offers an attractive forward yield of 4.2% [11]

Market Overview - As the first quarter of 2025 concluded, initial market optimism faded due to trade war fears and economic uncertainty [1] - No S&P 500 sector achieved double-digit gains, with energy leading at an 8.08% rise [2] Top Performers - CVS Health emerged as the top-performing S&P 500 stock, surging 52.8% following stronger-than-expected fourth-quarter earnings [3] - Philip Morris International followed with a 33.1% gain, driven by growth in its smoke-free product segment and high dividend appeal [5] - Newmont Corporation rose 30.5% due to increasing gold prices amid market uncertainty [6] - AT&T Inc. gained nearly 26%, benefiting from its domestic business model that insulated it from tariff volatility [7] Financial Highlights - CVS Health exceeded Wall Street estimates on revenue and adjusted earnings per share, trading at $66.79 [4] - Philip Morris International offers a quarterly dividend of $1.35 per share, with shares trading at $161.75 [5] - Newmont Corporation's stock is trading at $47.60 [6] - AT&T's stock is currently at $28.73, favored by income-focused investors due to its strong dividend yield [7]

Core Viewpoint - AT&T is viewed as a stable investment option in an unstable market, with a significant stock rally of 60% over the past year compared to a 6% rise in the S&P 500 [1] Group 1: Company Restructuring and Financial Performance - AT&T divested from low-margin and unprofitable media assets like DirecTV and Time Warner, allowing it to focus on its core 5G wireless and fiber broadband businesses while reducing debt [2] - In 2023, AT&T added 1.7 million net postpaid phone subscribers and 1.1 million net fiber subscribers, with free cash flow (FCF) increasing by 19% to $16.8 billion, covering $8.1 billion in dividends [3] - For 2024, AT&T expects to add 1.7 million net postpaid phone subscribers and 1 million net fiber subscribers, with FCF growing 5% to $17.6 billion, comfortably covering $8.2 billion in dividends [3] Group 2: Market Position and Future Outlook - AT&T is considered a safe haven stock amid inflation and high interest rates, with a current dividend yield of 3.9% [4] - For 2025, AT&T anticipates mobility service revenue growth at the higher end of 2% to 3%, consumer fiber broadband revenue growth in the mid-teens, and consolidated service revenue growth in low single digits [5] - The company expects to generate over $16 billion in free cash flow and adjusted EPS between $1.97 to $2.07, with adjusted EBITDA projected to grow by at least 3% [6] Group 3: Debt Management and Valuation - AT&T plans to reduce its net-debt-to-adjusted-EBITDA ratio from 2.7 at the end of 2024 to 2.5 in the first half of 2025 while increasing investments in wireless and fiber networks [7] - Analysts project AT&T's revenue and adjusted EBITDA to grow at compound annual rates of 1.5% and 3.2% from 2024 to 2027, with an enterprise value of $314.7 billion [8] - AT&T is trading at 6.9 times this year's adjusted EBITDA, which is competitive compared to Verizon's 6.5 times, despite Verizon offering a higher dividend yield of 6% [8] Group 4: Investment Consideration - AT&T is seen as a worthy investment due to its insulation from tariffs, attractive dividends, and low valuations, making it a safe option for income generation [9]