2024-01-25 08:00:00 ET
Summary
- AT&T reported decent earnings for Q4, beating estimates on the top line, but missing on earnings.
- The telecom company saw solid gains in broadband subscribers and average revenue per user.
- I see a number of catalysts for AT&T in 2024.
- AT&T submitted a strong free cash flow forecast for FY 2024, indicating a higher dividend safety margin.
- AT&T's shares trade at a 14%+ earnings yield on the drop.
AT&T ( T ) reported decent earnings for the fourth quarter on Wednesday that nonetheless caused the telecom’s shares to slip 3% on a slightly weaker-than-expected earnings forecast for FY 2024. In my opinion, however, the dip provides an attractive engage opportunity because AT&T convinced with solid broadband subscriber gains and high-single digit year-over-year growth in average revenue per user. AT&T out-performed its own (raised) free cash flow guidance and submitted a decent FCF forecast for FY 2024 that implies up to $1.2B free cash flow growth this year. I believe that AT&T represents very decent value for investors as a high-yield, high-FCF stock and the dividend safety margin has also increased. The risk profile on the drop (and even without a price drop) is favorable, in my opinion!...
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AT&T: A Top Income Stock With A 6.7% Yield And Improved Coverage