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 ...

Both Verizon (NYSE: VZ ) (NEOE: VZ:CA ) and AT&T (NYSE: T ) have delivered better-than-expected Q4 results, accompanied by robust outlooks for the new year. This has sent both companies’ shares on an upsurge, diverging from its correlation to long-end TreasuryAnalyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am ...

2024 4th Quarter Earnings January 27, 2025 © 2025 AT&T Intellectual Property. AT&T, and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners Cautionary Language Concerning Forward-looking Statements Information set forth in this presentation contains financial estimates and other forward- looking statements that are subject to risks and uncertainties, and actual results might differ ...

AT&T Inc. (NYSE:T) Q4 2024 Earnings Conference Call January 27, 2025 8:30 AM ET Company Participants Brett Feldman - SVP, Finance & IR John Stankey - CEO Pascal Desroches - CFO Conference Call Participants John Hodulik - UBS David Barden - Bank of America Michael Rollins - Citi Benjamin Swinburne - Morgan Stanley Peter Supino - Wolf Research James Schneider - Goldman Sachs Sebastiano Petti - JPMorgan Timothy Horan - Oppenheimer Operator Good morning, and welcome to AT&T's Fourth Quarter 2024 Earnings Call. ...

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