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AT&T Seeks Continued Earnings Growth in 2Q17

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AT&T’s earnings in 2Q17

AT&T (T) plans to report its results for 2Q17 on July 25, 2017. In this series, we’ll take a look at the expectations for the company’s performance during the quarter. Wall Street expects AT&T’s earnings to increase in 2Q17. Analysts anticipate AT&T’s adjusted EPS (earnings per share) to reach ~$0.74 in 2Q17 compared with $0.72 in 2Q16.

In 1Q17, AT&T’s earnings met Wall Street consensus expectations. AT&T’s 1Q17 EPS increased ~2.8% YoY (year-over-year) to reach $0.74, compared to $0.72 in 1Q16.

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AT&T’s consensus versus actual earnings

AT&T’s earnings met Wall Street consensus expectations during 1Q17, 4Q16, 3Q16, and 2Q16. However, it beat analysts’ expectations in 1Q16. In 1Q16, AT&T’s earnings outperformed analysts consensus estimates by ~4.3%.

During 1Q17, AT&T added 2.7 million wireless subscribers, battling stiff competition from upcoming rivals T-Mobile (TMUS) and Sprint (S). AT&T was able to extend its gains by expanding its footprint in Mexico, as well as by increasing the number of IoT (Internet of Things) devices.

In contrast, Verizon’s (VZ) adjusted EPS decreased ~10.4% YoY to reach $0.95 in 1Q17. Verizon’s EPS factored in the exclusion of early debt redemption costs and gains on spectrum license transactions during the quarter.

In the next part, we’ll see how much revenue growth we can anticipate from AT&T in 2Q17.

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