uploads///Telecom ATT Q Adjusted EPS

AT&T’s Outlook for 2019

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Jan. 31 2019, Published 9:48 a.m. ET

Analysts’ estimates

Analysts expect AT&T (T) to report an ~8.4% rise in its revenues to $185.1 billion in 2019—compared to $170.8 billion in 2018. The company’s adjusted EPS is expected to be $3.57 in 2019—compared to $3.52 in 2018.

During AT&T’s fourth-quarter earnings conference call, the company’s management offered key insights into the outlook for 2019. In 2019, AT&T expects low-single-digit adjusted EPS growth. The company expects the free cash flow to be ~$26 billion. AT&T expects gross capital expenditures of ~$23 billion in the fourth quarter.

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In the fourth quarter, AT&T’s adjusted EPS rose ~10.3% YoY (year-over-year) to $0.86, which was in line with analysts’ estimates of $0.86. However, AT&T’s total revenues missed analysts’ expectations by ~1.0% in the fourth quarter. The company’s total revenues rose ~15.2% YoY to $48.0 billion in the fourth quarter.

Peer comparison

Verizon’s (VZ) adjusted EPS rose ~30.2% YoY to $1.12 in the fourth quarter. T-Mobile (TMUS) and Sprint (S) haven’t reported their financial results for the quarter ending December 31. Analysts expect T-Mobile’s adjusted EPS to increase ~14.8% YoY to $0.70. Sprint is expected to report an adjusted EPS of -$0.02.

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