AT&T Will No Longer Provide Full-Year Sales Forecasts

Elizabeth Williams
April 27, 2017

Macquarie's target price suggests a potential upside of 12.67% from the company's current price. Free cash flow totaled $3.2 billion for the quarter.

Adding optimism for the stock, Zacks Investment Research also had high hopes for the company with a consensus EPS estimate of $0.74, a bit higher from the $0.72 for the same quarter a year ago and higher than the $0.66 in the previous quarter.

Wells Fargo's Jennifer Fritzsche, a bull on AT&T shares, with an Outperform rating, writes that there were "a lot of moving parts" in this report. SunTrust Banks, Inc. assumed coverage on shares of AT&T in a research note on Tuesday, April 18th. The company has a consensus rating of "Hold" and an average target price of $44.09.

AT&T (NYSE:T) traded down 0.25% on Thursday, hitting $40.34. The company has a market cap of $248.37 billion, a P/E ratio of 19.27 and a beta of 0.39. T has a 1-year high of $43.89 and a 1-year low of $36.10. Roundview Capital LLC now owns 41,842 shares of the technology company's stock valued at $1,780,000 after buying an additional 16,525 shares during the period. AT&T also saw some unusual options trading on Monday. Stock investors acquired 26,907 call options on the stock.

AT&T late Tuesday said first-quarter earnings rose 3%, in line with expectations, but revenue fell 2.7%, missing estimates, primarily due to record-low equipment sales in wireless. AT&T had a net margin of 7.92% and a return on equity of 14.15%. Revenues dropped to Dollars 39.4 billion from USD 40.5 billion a year ago, and the U.S. operator withdrew its forecast for a return to revenue growth this year, saying equipment sales were too volatile to allow it to issue guidance. During the same period in the prior year, the company posted $0.72 EPS. Dimensional Fund Advisors LP now owns 59,285,390 shares of the technology company's stock worth $2,521,483,000 after buying an additional 2,770,539 shares in the last quarter. AT&T's revenue for the quarter was down 2.8% compared to the same quarter a year ago.

AT&T Will No Longer Provide Full-Year Sales Forecasts

The company also recently declared a quarterly dividend, which will be paid on Monday, May 1st. The ex-dividend date of this dividend is Thursday, April 6th. This represents a $1.96 dividend on an annualized basis and a yield of 4.85%. AT&T's dividend payout ratio is now 93.78%.

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Large investors have recently modified their holdings of the stock.

Let's take a look of the stock performance of At&T in the fourth quarter of 2016 and its movement in the first three months of 2017. CEO Randall Stephenson acknowledged AT&T's move on unlimited was "probably a little slow" and noted the carrier "lost some share" during the quarter as a result. They set a "hold" rating and a $40.00 price target on the stock. Robeco Institutional Asset Management B.V. increased its position in shares of AT&T by 5.9% in the third quarter. That's right - they think these 10 stocks are even better buys.

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