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AT&T Beats Analyst Estimates on EPS

By Seth Jayson - Updated Apr 7, 2017 at 12:11PM

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Just the facts, Fool.

AT&T (NYSE: T) reported earnings on Oct. 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q3), AT&T met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share increased.

Gross margins increased, operating margins contracted, net margins increased.

Revenue details
AT&T notched revenue of $31.46 billion. The 27 analysts polled by S&P Capital IQ hoped for revenue of $31.55 billion on the same basis. GAAP reported sales were 0.1% lower than the prior-year quarter's $31.48 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.63. The 31 earnings estimates compiled by S&P Capital IQ predicted $0.60 per share. GAAP EPS of $0.63 for Q3 were 3.3% higher than the prior-year quarter's $0.61 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 59.6%, 140 basis points better than the prior-year quarter. Operating margin was 19.2%, 60 basis points worse than the prior-year quarter. Net margin was 11.6%, 10 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $32.19 billion. On the bottom line, the average EPS estimate is $0.51.

Next year's average estimate for revenue is $127.01 billion. The average EPS estimate is $2.38.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 5,353 members out of 5,811 rating the stock outperform, and 458 members rating it underperform. Among 1,324 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,247 give AT&T a green thumbs-up, and 77 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on AT&T is hold, with an average price target of $35.61.

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