AT&T’s earnings in Q4 2018
AT&T (T) is expected to report its results for the fourth quarter on January 30. In this series, we’ll take a look at the expectations for AT&T’s performance in the quarter. Wall Street analysts expect the company’s earnings to increase in the fourth quarter. Analysts expect AT&T to post adjusted EPS of $0.85 in the fourth quarter as compared with $0.78 in the fourth quarter of 2017.
In the third quarter, AT&T’s adjusted EPS rose ~21.6% YoY to reach $0.90. Its earnings missed the consensus Wall Street estimate by ~4.3% in the third quarter.
In the third quarter, AT&T added 3.4 million net wireless subscribers in the US, with gains in prepaid and connected devices. This might be significant given that smaller competitors T-Mobile (TMUS) and Sprint (S) have made much of their ability to attract subscribers from other wireless carriers. In addition, AT&T gained 69,000 postpaid phone net subscribers in the third quarter.
By comparison, T-Mobile’s EPS is expected to increase ~14.8% YoY to $0.70 in the fourth quarter, while Verizon’s (VZ) adjusted EPS is expected to rise ~26.7% YoY to $1.09. Sprint is expected to report EPS of -$0.02 in the third quarter of fiscal 2018, which ended in December.
In the next part, we’ll look at how much total revenue growth we can expect from AT&T in the fourth quarter.