BLK - Anticipating AT&T's Q2 Comeback
2024-07-18 11:51:19 ET
Summary
- T has performed well, delivering a total return of 43% since August 2023, outpacing the market.
- AT&T added 349,000 postpaid phone subscribers in Q1 2024, significantly outpacing Verizon, and shows continued strength in its fiber broadband segment with 252,000 net additions.
- AT&T reduced its debt to $128.7 billion from $134.7 billion, targeting a net debt to adjusted EBITDA ratio of 2.5x by mid-2025, supported by a strong balance sheet.
- Trading at 8.6 times 2024 earnings with a near 6% dividend yield, AT&T's stock is undervalued, bolstered by growth in its 5G and fiber broadband segments.
- Analysts expect AT&T to report Q2 earnings of $0.58 per share and revenues of $30 billion, maintaining performance despite economic headwinds and flat handset sales.
Investment Thesis
Since our initial bullish investment thesis on AT&T ( T ) was published on August 2, 2023, the stock has performed remarkably well. It has delivered a total return of 43%, including dividends, significantly outpacing the broader market's return....
Anticipating AT&T's Q2 Comeback