Core Viewpoint - AT&T Inc. has significantly outperformed the Wireless National industry and major competitors over the past year, indicating strong market performance and growth potential [1][4]. Price Performance - AT&T's stock has increased by 23.7% over the past year, while the Wireless National industry grew by 9.6%. In contrast, the S&P 500 composite and Zacks Computer & Technology sector declined by 3.9% and 6%, respectively [1]. - The stock closed at $27.61, reflecting a 0.1% decrease in the last trading session and is currently trading at a 5% discount to its 52-week high [5]. Major Tailwinds for AT&T - The company is enhancing its network infrastructure, focusing on 5G and fiber networks to improve coverage and capacity nationwide [6]. - AT&T reported 290,000 post-paid net additions in Q1 2025, including 324,000 postpaid wireless phone additions, with a postpaid churn rate of 0.83% [7]. - The company aims to exceed 30 million total fiber locations by mid-2025 and over 50 million by 2029, transitioning from legacy copper networks to 5G and fiber [8]. - AT&T is capitalizing on the 5G boom, utilizing millimeter-wave spectrum in dense areas and mid- and low-band spectrum in suburban and rural areas [9]. - The company is focusing on edge computing services to enhance data traffic management and improve customer experiences through partnerships with Google Cloud and Microsoft [10][12]. Financial Performance - AT&T reaffirmed its full-year free cash flow guidance of over $16 billion, with Q1 2025 generating $9.05 billion in cash from operations and $3.15 billion in free cash flow [13]. - The company plans to initiate share repurchases targeting $3 billion by year-end under a $10 billion authorization, indicating a commitment to returning capital to shareholders [14]. Challenges - Despite strong wireless growth, AT&T faces challenges from declining legacy services and competitive pressures in its wireline division [15]. - High-speed Internet revenues are contracting due to the decline of legacy Digital Subscriber Line services and increased competition from cable companies [16]. - The evolving macroeconomic environment and potential tariff impacts on costs remain concerns for the company [18]. - Analysts have revised estimates downwards for the current and next year, reflecting bearish sentiments regarding the stock's growth potential [19]. Valuation Metrics - AT&T's shares are trading at a price/earnings ratio of 12.96, which is lower than the industry average of 13.88 but above its historical mean of 9.64 [21]. Investment Strategy - By investing in infrastructure and new technologies, AT&T is positioned to enhance connectivity and drive postpaid subscriber growth [23]. - However, a saturated wireless market and competitive pricing pressures have affected profitability, leading to skepticism about future growth [24].

Core Viewpoint - U.S. Cellular reported quarterly earnings of $0.21 per share, missing the Zacks Consensus Estimate of $0.37 per share, representing an earnings surprise of -43.24% [1] - The company posted revenues of $891 million for the quarter, missing the Zacks Consensus Estimate by 3.72% and down from $950 million a year ago [2] Financial Performance - Over the last four quarters, U.S. Cellular has surpassed consensus EPS estimates three times [2] - The company had a previous quarter surprise of 150%, with actual earnings of $0.05 against an expected loss of $0.10 [1] - The current consensus EPS estimate for the upcoming quarter is $0.39 on revenues of $912.36 million, and for the current fiscal year, it is $1.16 on revenues of $3.69 billion [7] Stock Performance - U.S. Cellular shares have increased by approximately 9.8% since the beginning of the year, contrasting with the S&P 500's decline of -4.7% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Outlook - The Wireless National industry, to which U.S. Cellular belongs, is currently ranked in the top 38% of over 250 Zacks industries, suggesting a favorable outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5]

Company Performance - ATN International reported a quarterly loss of $0.57 per share, significantly worse than the Zacks Consensus Estimate of a loss of $0.10, marking an earnings surprise of -470% [1] - The company posted revenues of $179.29 million for the quarter ended March 2025, slightly exceeding the Zacks Consensus Estimate by 0.35%, but down from $186.79 million a year ago [2] - Over the last four quarters, ATN International has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times as well [2] Stock Outlook - The stock has increased approximately 8.9% since the beginning of the year, contrasting with the S&P 500's decline of -5.5% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.17 on revenues of $183.71 million, and for the current fiscal year, it is -$0.08 on revenues of $728.03 million [7] Industry Context - The Wireless National industry, to which ATN International belongs, is currently ranked in the top 31% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact ATN International's stock performance [5][6]

Group 1: Earnings Performance - Spok Holdings reported quarterly earnings of $0.25 per share, exceeding the Zacks Consensus Estimate of $0.18 per share, and up from $0.21 per share a year ago, representing an earnings surprise of 38.89% [1] - The company posted revenues of $36.29 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 6.75%, compared to year-ago revenues of $34.91 million [2] Group 2: Stock Performance and Outlook - Spok shares have declined approximately 10.2% since the beginning of the year, while the S&P 500 has decreased by 5.5% [3] - The current consensus EPS estimate for the upcoming quarter is $0.20 on revenues of $34.3 million, and for the current fiscal year, it is $0.79 on revenues of $138 million [7] Group 3: Industry Context - The Wireless National industry, to which Spok belongs, is currently ranked in the top 31% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Cambium (CMBM), another company in the same industry, is expected to report a quarterly loss of $0.11 per share, reflecting a year-over-year change of +76.1%, with revenues anticipated to be $45.53 million, up 7.5% from the previous year [9]

Group 1 - ATN International (ATNI) is a notable stock in the Computer and Technology sector, currently outperforming its peers with a year-to-date return of 6.4% compared to the sector average of -11.2% [4] - The Zacks Rank for ATN International is 1 (Strong Buy), indicating a positive earnings outlook and strong analyst sentiment, with a 74.7% increase in the consensus estimate for full-year earnings over the past three months [3][4] - ATN International belongs to the Wireless National industry, which has an average year-to-date return of 9.7%, indicating that ATNI is slightly underperforming its industry [6] Group 2 - Another stock in the Computer and Technology sector, Spotify (SPOT), has shown a year-to-date return of 33.6% and has a Zacks Rank of 2 (Buy) with a 20.7% increase in the consensus estimate for its current year EPS over the past three months [5] - The Computer and Technology sector is ranked 8 in the Zacks Sector Rank, which measures the strength of individual sector groups [2]

T-Mobile (TMUS) came out with quarterly earnings of $2.58 per share, beating the Zacks Consensus Estimate of $2.45 per share. This compares to earnings of $2 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 5.31%. A quarter ago, it was expected that this wireless carrier would post earnings of $2.17 per share when it actually produced earnings of $2.57, delivering a surprise of 18.43%.Over the last four quarters, the company ha ...

Group 1 - Verizon Communications reported quarterly earnings of $1.19 per share, exceeding the Zacks Consensus Estimate of $1.15 per share, and showing an increase from $1.15 per share a year ago, representing an earnings surprise of 3.48% [1] - The company posted revenues of $33.49 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.48%, and an increase from $32.98 billion year-over-year [2] - Verizon has outperformed the S&P 500, with shares increasing about 7.4% since the beginning of the year, while the S&P 500 has declined by 12.3% [3] Group 2 - The current consensus EPS estimate for the upcoming quarter is $1.20 on revenues of $33.35 billion, and for the current fiscal year, it is $4.70 on revenues of $136.65 billion [7] - The Zacks Industry Rank indicates that the Wireless National industry is in the top 13% of over 250 Zacks industries, suggesting a favorable outlook for stocks within this sector [8]

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].

Group 1: T-Mobile US, Inc. (TMUS) - T-Mobile's shares have outperformed the Zacks Wireless National industry over the past year, with a growth of +62.2% compared to +45.5% for the industry [4] - The company achieved a significant increase in service revenues, driven by the addition of 6.1 million postpaid net customers in 2024, marking the best performance in the industry [4][5] - Solid growth in free cash flow indicates efficient capital management, positioning the company well for growth initiatives, debt repayment, and dividends [5] Group 2: Salesforce, Inc. (CRM) - Salesforce shares have underperformed the Zacks Computer - Software industry over the past year, declining by -12.8% compared to -6% for the industry [7] - The company is experiencing strong demand due to customers undergoing digital transformation, which is positively impacting revenue [8] - Continued international deal wins and the acquisition of Slack enhance its competitive position, with projected revenue growth at a CAGR of 8.9% through fiscal 2025-2028 [9] Group 3: Alibaba Group Holding Ltd. (BABA) - Alibaba's shares have outperformed the Zacks Internet - Commerce industry over the past year, increasing by +49.3% compared to +4.8% for the industry [10] - The company's growth is supported by the monetization of Taobao and Tmall, as well as strong performance in its international commerce retail business [10][11] - Despite strong performance, non-GAAP earnings of $2.93 per ADS fell short of estimates, indicating a complex growth narrative [11] Group 4: Old Point Financial Corp. (OPOF) - Old Point Financial shares have significantly outperformed the Zacks Banks - Southeast industry, with a growth of +158.2% compared to +5.1% for the industry [12] - The company has recorded earnings of $2.02 for 2024 and projected 2025 EPS, supporting a valuation upside at 12.5X forward P/E [12][13] - Efficiency improvements are evident with a 2% drop in noninterest expenses and an improved efficiency ratio, contributing to a ROAE of 9.96% and ROAA of 0.77% [13]

Company Overview - Cogent Communications (CCOI) shares increased by 6.3% to close at $53.83, following a notable trading volume, despite a 27.6% loss over the past four weeks [1] - The company is a leading provider of high-speed Internet access, benefiting from cost-effective operations and a streamlined product offering [2] - Cogent has a strong network presence in major North American cities and carrier-neutral colocation centers in North America and Europe, which supports high Internet traffic levels [2] Market Factors - The U.S. Government's decision to suspend higher tariffs for most countries for 90 days, excluding China, has positively impacted investor confidence in Cogent [2] - The consensus EPS estimate for Cogent's upcoming quarterly report is a loss of $0.88 per share, reflecting a year-over-year change of +31.8%, with expected revenues of $252.09 million, down 5.3% from the previous year [3] Earnings Estimates - Over the last 30 days, the consensus EPS estimate for Cogent has been revised 6% higher, indicating a potential for price appreciation [4] - Empirical research suggests a strong correlation between earnings estimate revisions and near-term stock price movements, highlighting the importance of monitoring these trends [3][4] Industry Context - Cogent belongs to the Zacks Wireless National industry, which includes other companies like T-Mobile (TMUS), that also experienced a recent stock price increase [4] - T-Mobile's consensus EPS estimate has changed by +0.2% to $2.47, representing a year-over-year change of +23.5% [5]