2 Numbers AT&T Stock Investors Should Know Ahead of Earnings

While  AT&T's (NYSE: T  ) success isn't as tied to Apple (NASDAQ: AAPL  ) and the iPhone as it once was, investors watching this week still need to know if increased competition is taking a toll.

There's plenty of it. Sprint Nextel (NYSE: S  ) and T-Mobile have joined Verizon in carrying the iPhone. All four are pitching deals to get customers to switch, though only T-Mobile has taken the dramatic step of ending subsidies and lock-in contracts. What will that mean for AT&T, whose network operates on a similar GSM band to that operated by T-Mobile?  We'll know more when the carrier reports earnings on April 23.

For perspective, AT&T activated 8.6 million iPhones in the fourth quarter. A good number, to be sure. But for investors, it's the 4.3 million new iPhones AT&T customers activated in last year's Q1.

Wall Street is expecting Q1 revenue to decline 0.20% to $31.75 billion, resulting in $0.64 of profit per share. The company beat earnings estimates in each of the first three quarters of 2012, only to suffer a 4.3% miss in Q4, according to data supplied by Yahoo! Finance. AT&T stock is up about 27% over that period.

Would a beat help AT&T stock rally further? Will AT&T continue to be the top iPhone supplier to U.S. consumers? Tim Beyers of Motley Fool Rule Breakers and Motley Fool Supernova weighs in on these questions in the following video. Please watch and then leave a comment to let us know whether you would buy, sell, or short AT&T stock at current prices.

The mobile revolution is still in its infancy, but with so many different companies, it can be daunting to know how to profit in the space. Fortunately, The Motley Fool has released a free report on mobile named "The Next Trillion-Dollar Revolution" that tells you how. The report describes why this seismic shift will dwarf any other technology revolution seen before it and also names the company at the forefront of the trend. You can access this report today by clicking here -- it's free.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2362424, ~/Articles/ArticleHandler.aspx, 12/19/2014 7:01:58 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement