2024-01-24 21:54:47 ET
Summary
- AT&T's Q4 earnings beat on revenue, but missed on EPS. The EPS miss was due to an actuarial charge on its pension plan.
- Investors sold T stock due to the earnings miss, but the pension liabilities that caused the earnings miss are shrinking long term.
- In 2023, AT&T showed positive growth in revenue, earnings, and free cash flow after years of decline.
- Factors such as positive revenue growth, the completion of the WarnerMedia divestment, and potential interest rate cuts could contribute to AT&T's earnings improvement.
- In this article, I make the case that AT&T's 2024 earnings will be better than its 2023 results, likely lifting the stock.
AT&T ( T ) just released its fiscal fourth quarter (Q4) earnings. The release showed 2.2% revenue growth and 4.9% growth in free cash flow. Diluted EPS of $0.54 was down 11.4%, however, much of it was a $0.18 actuarial loss on employee benefit plans. Such losses will reverse if AT&T's pension fund makes gains....
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AT&T: Q4, Large Revenue Beat And Strong Growth - A Buy