T-Mobile US, Inc. (TMUS) shares rallied 3.5% in the last trading session to close at $254.90. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 4% loss over the past four weeks.T-Mobile is benefiting from industry-leading postpaid customer growth with a record-low churn rate. The company recently completed the acquisitions of Blis, an innovative provider of privacy-centric advertising solutions, and Vistar Medi ...

Core Viewpoint - Lumen Technologies, Inc. (LUMN) has experienced a significant decline in its stock price, dropping 34.1% in the past month, which is notably worse than the declines of the S&P 500 and the Technology Services industry [1][4]. Price Performance - The broader market has been affected by escalating tariff and trade tensions, particularly with China, leading to supply chain disruptions and inflationary pressures [4]. - LUMN's stock has underperformed compared to peers like Verizon, AT&T, and T-Mobile, which have seen smaller declines of 9.3%, 3.3%, and 7.6% respectively [5]. Company-Specific Challenges - Lumen is facing challenges from its legacy business, which saw a 5.3% year-over-year revenue decline to $3,329 million in Q4 2024, with 25% of this decline attributed to divestitures and sales [7]. - The company anticipates adjusted EBITDA for 2025 to be between $3.2 billion and $3.4 billion, with capital expenditures expected to range from $4.1 billion to $4.3 billion [8]. Debt Concerns - Despite repaying $1.6 billion of debt in 2024, Lumen's balance sheet remains heavily indebted, with $17.494 billion in long-term debt as of December 31, 2024 [9][10]. AI and Growth Opportunities - Lumen's pivot to AI is seen as a potential growth catalyst, with $8.5 billion in Private Connectivity Fabric (PCF) deals secured in 2024 [11]. - The demand for fiber capacity is increasing due to AI needs, with significant sales growth in IP and Wave services, both up 13% in North America's enterprise channels [12]. Network Expansion and Utilization - Lumen plans to expand its inter-city fiber miles from 12 million in 2022 to 47 million by 2028, aiming to increase network utilization from 57% to 70% during the same period [13][14]. Cost Containment Efforts - The company is targeting $1 billion in cost savings by the end of 2027 through infrastructure simplification and product portfolio reduction [17]. Valuation Perspective - Lumen is currently trading at a price-to-sales ratio of 0.24, significantly lower than the Technology Services industry's ratio of 3.46, indicating a compelling valuation opportunity [18][19]. Conclusion - Lumen is navigating a transformative period with potential growth from AI and cloud services, but faces challenges from legacy business issues and high debt levels. The company is focusing on cost containment and network expansion to improve its financial position [20][21].

Core Viewpoint - Verizon Communications is experiencing a decline in stock price and is set to release its financial results, with mixed expectations for earnings and revenue growth [1][2][3]. Financial Performance - Verizon's upcoming EPS is projected at $1.14, indicating a 0.87% decrease year-over-year [2]. - Revenue for the same quarter is estimated at $33.39 billion, reflecting a 1.23% increase compared to the previous year [2]. - For the full year, earnings are expected to be $4.69 per share, with revenue projected at $136.7 billion, marking increases of +2.18% and +1.42% respectively from last year [3]. Analyst Estimates - Recent adjustments to analyst estimates for Verizon are crucial as they reflect short-term business trends [4]. - Positive estimate revisions are interpreted as favorable for the company's business outlook [4]. - Over the last 30 days, the Zacks Consensus EPS estimate has seen a 0.12% increase, and Verizon currently holds a Zacks Rank of 3 (Hold) [6]. Valuation Metrics - Verizon has a Forward P/E ratio of 9.17, significantly lower than the industry average of 19.83, suggesting it is trading at a discount [7]. - The company has a PEG ratio of 4.28, compared to the Wireless National industry's average PEG ratio of 3.05 [8]. Industry Context - The Wireless National industry is part of the Computer and Technology sector, which holds a Zacks Industry Rank of 28, placing it in the top 12% of over 250 industries [8]. - The Zacks Industry Rank indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [9].

Group 1 - Verizon Communications is a leading U.S. cellphone carrier with a strong track record of exceeding earnings estimates, particularly in the last two quarters, achieving an average surprise of 0.88% [1] - For the last reported quarter, Verizon's earnings were $1.10 per share, surpassing the Zacks Consensus Estimate of $1.09 per share, resulting in a surprise of 0.92% [2] - In the previous quarter, Verizon reported earnings of $1.19 per share against an expected $1.18 per share, delivering a surprise of 0.85% [2] Group 2 - Recent favorable changes in earnings estimates for Verizon indicate a positive Earnings ESP of +0.98%, suggesting analysts are optimistic about the company's earnings prospects [4][7] - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high likelihood of another earnings beat, with historical data showing that such combinations lead to positive surprises nearly 70% of the time [5][7] - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions, which may provide a more accurate prediction [6]

Group 1 - AT&T's stock closed at $26.96, showing a slight decline of -0.22% compared to the previous day, while the S&P 500 gained 1.77% [1] - Over the past month, AT&T's stock has increased by 1.5%, contrasting with a 9.47% loss in the Computer and Technology sector and a 5.73% loss in the S&P 500 [1] Group 2 - AT&T is expected to report earnings on April 23, 2025, with an EPS forecast of $0.52, reflecting a decrease of 5.45% from the same quarter last year, while revenue is projected to be $30.51 billion, up 1.6% year-over-year [2] - For the full year, earnings are projected at $2.14 per share and revenue at $124.15 billion, indicating changes of -5.31% and +1.48% respectively from the previous year [3] Group 3 - Recent changes in analyst estimates for AT&T suggest a correlation with near-term stock prices, with positive adjustments indicating analyst optimism about the company's business and profitability [3][4] - The Zacks Rank system, which assesses estimate changes, currently ranks AT&T at 3 (Hold), with a consensus EPS projection that has decreased by 1.72% in the past 30 days [5] Group 4 - AT&T is trading at a Forward P/E ratio of 12.63, which is below the industry average of 21.53, indicating a discount compared to its peers [6] - The PEG ratio for AT&T is 3.1, which is in line with the industry average, suggesting that the company's projected earnings growth is accounted for similarly to its peers [6] Group 5 - The Wireless National industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 24, placing it in the top 10% of over 250 industries, indicating strong performance potential [7]

In the latest market close, AT&T (T) reached $26.16, with a -0.24% movement compared to the previous day. This change lagged the S&P 500's daily gain of 1.12%. Meanwhile, the Dow experienced a rise of 1.14%, and the technology-dominated Nasdaq saw an increase of 1.46%.Coming into today, shares of the telecommunications company had gained 8.12% in the past month. In that same time, the Computer and Technology sector lost 7.5%, while the S&P 500 lost 4.13%.Analysts and investors alike will be keeping a close ...

Company Performance - Verizon Communications (VZ) closed at $42.84, with a slight decrease of -0.07% compared to the previous day, underperforming the S&P 500 which gained 1.12% [1] - Over the last month, Verizon's shares increased by 7.69%, outperforming the Computer and Technology sector's loss of 7.5% and the S&P 500's loss of 4.13% [1] Earnings Expectations - The upcoming earnings report for Verizon is expected to show an EPS of $1.14, reflecting a 0.87% decline from the same quarter last year, with anticipated revenue of $33.46 billion, indicating a 1.44% increase year-over-year [2] - For the entire year, Zacks Consensus Estimates forecast earnings of $4.69 per share and revenue of $136.75 billion, representing increases of +2.18% and +1.46% respectively compared to the previous year [3] Analyst Forecasts - Recent revisions to analyst forecasts for Verizon are crucial as they reflect changes in short-term business dynamics, with positive revisions indicating analysts' confidence in the company's performance [4] - The Zacks Rank system, which evaluates these estimate changes, currently ranks Verizon at 3 (Hold), with the consensus EPS estimate moving 0.19% lower over the last 30 days [6] Valuation Metrics - Verizon has a Forward P/E ratio of 9.15, significantly lower than the industry average of 17.32, indicating that Verizon is trading at a discount compared to its peers [7] - The current PEG ratio for Verizon is 4.49, compared to the Wireless National industry's average PEG ratio of 3.01, suggesting that Verizon's expected earnings growth rate is factored into its valuation [8] Industry Ranking - The Wireless National industry, which includes Verizon, holds a Zacks Industry Rank of 27, placing it in the top 11% of over 250 industries, indicating strong performance potential [8][9]

Core Viewpoint - T-Mobile has reported strong fourth-quarter 2024 earnings, exceeding estimates with significant customer growth and revenue increases, leading to a positive outlook for the company moving forward [2][3][4]. Financial Performance - T-Mobile's net income for Q4 2024 was $2.98 billion, or $2.57 per share, marking a 48% increase year-over-year from $2.01 billion or $1.67 per share [3]. - Total revenues for Q4 2024 reached $21.87 billion, up from $20.47 billion in the same quarter last year, surpassing the consensus estimate of $21.17 billion [4]. - For the full year 2024, T-Mobile reported total revenues of $81.4 billion, an increase from $78.55 billion in 2023 [4]. Customer Growth - T-Mobile added 1.9 million postpaid net customers in the quarter, the highest in the industry, with a postpaid phone churn rate of 0.92% [6]. - The company reported postpaid average revenues per account increased to $146.28 from $140.23 year-over-year [6]. Revenue Segments - Service revenues totaled $16.92 billion, up from $16.04 billion year-over-year, driven by strong demand for postpaid services [5]. - Equipment revenues were $4.69 billion, an increase from $4.17 billion in the previous year, attributed to a higher average revenue per device sold [8]. Cash Flow and Liquidity - T-Mobile generated $5.54 billion in cash from operating activities in Q4 2024, compared to $4.85 billion in the prior-year quarter [11]. - As of December 31, 2024, the company had $5.4 billion in cash and cash equivalents, with long-term debt of $72.7 billion [12]. Future Outlook - For 2025, T-Mobile anticipates postpaid net customer additions between 5.5 million and 6 million, with core adjusted EBITDA estimated at $33.1-$33.6 billion [13]. - The company expects adjusted free cash flow in the range of $17.3-$18 billion and capital expenditures around $9.5 billion [13]. Industry Comparison - T-Mobile's performance is compared favorably against Verizon, which reported a revenue increase of 1.6% year-over-year, indicating T-Mobile's stronger growth trajectory in the wireless industry [17].

Company Performance - AT&T's stock closed at $26.90, showing a +1.24% increase from the previous day's closing price, outperforming the S&P 500 which fell by 1.59% [1] - Over the past month, AT&T shares have gained 9.66%, surpassing the Computer and Technology sector's decline of 4.81% and the S&P 500's loss of 2.23% [2] Upcoming Earnings - The upcoming earnings per share (EPS) for AT&T is projected at $0.52, reflecting a 5.45% decrease compared to the same quarter last year [3] - Revenue is expected to reach $30.55 billion, indicating a 1.75% growth year-over-year [3] - For the full year, analysts anticipate earnings of $2.14 per share and revenue of $124.19 billion, representing changes of -5.31% and +1.52% respectively from the previous year [4] Analyst Estimates - Recent revisions in analyst estimates suggest a positive outlook for AT&T's business performance and profit potential [4] - The Zacks Consensus EPS estimate has increased by 5.77% over the past month, and AT&T currently holds a Zacks Rank of 3 (Hold) [6] Valuation Metrics - AT&T's Forward P/E ratio stands at 12.44, which is lower than the industry's Forward P/E of 17.93, indicating a valuation discount [7] - The company has a PEG ratio of 3.05, aligning with the average PEG ratio of the Wireless National industry [8] Industry Context - The Wireless National industry is part of the Computer and Technology sector and holds a Zacks Industry Rank of 24, placing it in the top 10% of over 250 industries [9]

Core Viewpoint - AT&T has shown solid performance in its recent earnings report, with adjusted earnings and revenues exceeding expectations, driven by strong subscriber growth and a resilient business model [2][3][4]. Financial Performance - For Q4 2024, AT&T reported a net income of $4.03 billion or 56 cents per share, a significant increase from $2.13 billion or 30 cents per share in the previous year, primarily due to higher contributions from DIRECTV investments [3]. - The company's GAAP operating revenues for Q4 increased by 0.9% year over year to $32.3 billion, surpassing the consensus estimate of $32.29 billion [5]. - For the full year 2024, AT&T's net income was $10.75 billion or $1.49 per share, down from $14.19 billion or $1.97 per share in 2023, attributed to higher asset impairment and restructuring charges [4]. Subscriber Growth - AT&T experienced strong subscriber momentum with 839,000 post-paid net additions, including 482,000 postpaid wireless phone additions, and a postpaid churn rate of 0.85% [7]. - The average revenue per user (ARPU) for postpaid phone-only customers increased by 1.9% year over year to $56.72 [7]. Segment Performance - In the Communications segment, total operating revenues rose to $31.14 billion, driven by a 3.3% increase in Mobility revenues to $23.13 billion and a 3.4% increase in Consumer Wireline revenues to $3.46 billion [8]. - Revenues from the Business Wireline segment declined by 10% to $4.54 billion due to lower demand for legacy services [10]. Cash Flow and Liquidity - For 2024, AT&T generated $38.77 billion in cash from operations, slightly up from $38.31 billion in 2023, while free cash flow for the quarter was $4.8 billion, down from $6.4 billion in the previous year [12]. - As of December 31, 2024, AT&T had $3.3 billion in cash and cash equivalents and long-term debt of $118.4 billion [12]. Future Guidance - AT&T aims to enhance operational efficiencies while focusing on 5G and fiber connectivity, expecting wireless service revenues to grow by 2-3% in 2025 and broadband revenues to increase in the mid-teens [13]. - Adjusted earnings for 2025 are projected to be between $1.97 and $2.07 per share, with free cash flow expected to exceed $16 billion [14]. Market Position - AT&T's stock has shown an upward trend in estimates, with a Zacks Rank of 3 (Hold), indicating an expectation of in-line returns in the coming months [17]. - The company is positioned within the Zacks Wireless National industry, where competitors like Verizon have also shown positive performance [18].