Company Update: AT&T Inc (NYSE:T) – AT&T To See Higher Profit with Subsidy Cut, Says BTIG; Leasing Next?
December 31, 2015 at 10:59 AM EST
[at Barrons.com] – BTIG’s Walter Piecyk this morning raises his earnings estimates for AT&T (T) in response to a report yesterday from Chris Velazco of Engaget stating that the carrier is planning to end the traditional two-year phone contract and move all its consumer customers to month-by-month payments, citing internal AT&T documents. Starting January 8, AT&T Next will be the primary way to get a new smartphone at AT&T. This does not apply to business customers under a qualified wireless service agreement. Read more on this. AT&T, Inc. (T) , valued at $212.59B, started trading this morning at $34.56. During today’s session, T traded between $34.39 to $34.65 with the price of the stock fluctuating between $30.97 to $36.45 over the last 52 weeks. Priced at 12.91x this year’s forecasted earnings, T shares are relatively inexpensive compared to the industry’s 23.57x forward p/e ratio. The company pays shareholders $1.92 per share annually in dividends, yielding 5.58%. In a review of the consensus earnings estimate this quarter, 24 sell-side analysts are looking at $0.63 per share, which would be $0.08 better than the year-ago quarter and a $0.00 sequential decrease. In looking at the bigger picture, the full-year EPS estimate of $2.69 would be a $0.18 better when compared to the previous year’s annual results. The quarterly earnings estimate is predicated on a consensus revenue forecast of $42.77 Billion. If reported, that would be a 24.19% increase over the year-ago quarter. In terms of ratings, Citigroup upgraded T from Neutral to Buy (Sep 2, 2015). Previously, Buckingham Research Initiated T at to Buy. Investors should keep in mind is that the average price target is $37.04, which is 7.18% above where the stock opened this morning. See more in (NYSE:T) Similar Articles: Market Update (NYSE:VZ): AT&T To See Higher Profit with Subsidy Cut, Says BTIG; Leasing Next? Market Update: General Electric Company (NYSE:GE) – GE to Sell Commercial Lending and Leasing Business in Japan to Sumitomo Mitsui Finance and Leasing (SMFL) Company Update: AT&T Inc (NYSE:T) – Apple: Silver Lining in Low AT&T Q2 Upgrades, Says BTIG