The 10-second takeaway
For the quarter ended March 31 (Q1), AT&T met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly. Non-GAAP earnings per share expanded. GAAP earnings per share grew.
Gross margins increased, operating margins shrank, net margins grew.
AT&T booked revenue of $31.36 billion. The 23 analysts polled by S&P Capital IQ expected a top line of $31.74 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.64. The 28 earnings estimates compiled by S&P Capital IQ averaged $0.64 per share. Non-GAAP EPS of $0.64 for Q1 were 6.7% higher than the prior-year quarter's $0.60 per share. GAAP EPS of $0.67 for Q1 were 12% higher than the prior-year quarter's $0.60 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 60.0%, 60 basis points better than the prior-year quarter. Operating margin was 18.9%, 30 basis points worse than the prior-year quarter. Net margin was 11.8%, 50 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $31.95 billion. On the bottom line, the average EPS estimate is $0.72.
Next year's average estimate for revenue is $129.04 billion. The average EPS estimate is $2.53.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 5,402 members out of 5,861 rating the stock outperform, and 459 members rating it underperform. Among 1,304 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,239 give AT&T a green thumbs-up, and 65 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 $36.39.
Can your portfolio provide you with enough income to last through retirement? You'll need more than AT&T. Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks." Click here for instant access to this free report.
- Add AT&T to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.