Wall Street analysts’ estimates
Wall Street analysts expect AT&T (T) to report a ~7.8% rise in revenue to $184.0 billion in fiscal 2019 as compared to $170.8 billion in fiscal 2018. Its adjusted EPS are expected to be $3.58 in fiscal 2019 as compared to $3.52 in fiscal 2018.
During the Deutsche Bank Media, Internet and Telecom Conference held on March 13, John Stephens, AT&T’s chief financial officer, talked about AT&T’s key priorities and the outlook for 2019. Stephens stated that AT&T expects low-single-digit adjusted EPS growth in 2019. The company expects free cash flow to be ~$26 billion.
AT&T also expects gross capital expenditures of ~$23 billion in 2019, which is excluding the FirstNet reimbursements of $1 billion. This year, AT&T’s main priority is to pay down its huge debt and reduce its leverage to ~2.5x by the end of 2019.
AT&T’s stock price
AT&T stock has risen 6.1% year-to-date and fallen 18.2% in the trailing-12-month period. AT&T’s stock price has increased by 1.2% in the last five trading days. In comparison, peer telecom stocks Verizon (VZ), Sprint (S), and T-Mobile (TMUS) have generated returns of 3.1%, 7.6%, and 13.7%, respectively, in the year-to-date period.