The 10-second takeaway
For the quarter ended Dec. 31 (Q4), AT&T beat slightly on revenues and missed on earnings per share.
Compared to the prior-year quarter, revenue increased and earnings per share dropped to a loss.
Margins shrank across the board.
AT&T notched revenue of $32.50 billion. The 28 analysts polled by S&P Capital IQ anticipated revenue of $31.98 billion. Sales were 3.6% higher than the prior-year quarter's $31.36 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.42. The 32 earnings estimates compiled by S&P Capital IQ averaged $0.43 per share on the same basis. GAAP EPS were -$1.12 for Q4 versus $0.17 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 46.2%, 910 basis points worse than the prior-year quarter. Operating margin was -18.7%, 2,500 basis points worse than the prior-year quarter. Net margin was -20.5%, 2,380 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $31.78 billion. On the bottom line, the average EPS estimate is $0.59.
Next year's average estimate for revenue is $127.95 billion. The average EPS estimate is $2.43.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 5,351 members out of 5,793 rating the stock outperform, and 442 members rating it underperform. Among 1,274 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,211 give AT&T a green thumbs-up, and 63 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on AT&T is outperform, with an average price target of $31.56.
New mobile devices and services are changing the game and potential profitability in the telecom industry. Some will fail, some will tread water, and those providing the right services and the right devices will shine. Where does AT&T fit in? Who will lead going forward? Check out our latest free report: "3 Hidden Winners of the iPhone, iPad, and Android Revolution." Click here for instant access to this free report.
- Add AT&T to My Watchlist.