AT&T: A Stellar Opportunity As Earnings Near

Core Viewpoint - AT&T is expected to announce its second quarter financial results for the 2024 fiscal year on July 24th, with anticipated revenue growth but a decline in profits [4][5][20] Financial Performance - Analysts forecast revenue of $29.99 billion for the second quarter, a 0.2% increase from $29.92 billion in the same quarter of 2023, driven by growth in most operations except for the Business Wireline segment [5][6] - Earnings per share are projected to decline from $0.61 in Q2 2023 to $0.54 in Q2 2024, translating to a drop in net income from $4.44 billion to $3.88 billion [6][7] - Adjusted earnings per share are expected to decrease from $0.63 to $0.57, resulting in adjusted profits falling from $4.58 billion to $4.10 billion [6][7] Operational Segments - The Business Wireline segment has been in decline, affecting overall revenue and profitability, while other segments like Mobility and Latin America have shown growth [13][14][19] - Excluding the Business Wireline segment, total revenue growth from 2021 to 2023 was 8.1%, compared to 3.8% when including it [14][17] Future Outlook - Management anticipates adjusted EBITDA of approximately $44.70 billion for the year, up from $43.40 billion the previous year, with free cash flow expected between $17 billion and $18 billion [8][20] - The company is expected to continue generating significant positive cash flows and focus on debt reduction and dividends, with potential for share buybacks [20]