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What Are AT&T’s Key Priorities for the Rest of the Year?

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Jun. 14 2019, Updated 11:07 a.m. ET

AT&T’s priorities

This year, analysts expect AT&T’s (T) consolidated revenue to rise ~7.2% YoY (year-over-year) to $183.1 billion from $170.8 billion and its adjusted EPS to rise YoY to $3.56 from $3.52. During the Credit Suisse Communications Conference on June 5, AT&T CEO John Donovan spoke about AT&T’s top priorities for 2019. Donovan stated that AT&T’s main priority is to pay down its huge debt and reduce its leverage to the ~2.5x range by the end of this year.

AT&T also expects to see free cash flow of ~$26 billion, gross capex of ~$23 billion, and a dividend payout ratio in the high 50% range.

In the first quarter of 2019, AT&T’s adjusted EPS rose ~1.2% YoY to $0.86, which was in line with analysts’ estimates. However, its total revenue missed analysts’ estimate by ~0.6%, rising ~17.8% YoY to $44.8 billion.

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Peer comparison

T-Mobile’s (TMUS) adjusted EPS are expected to rise ~17.9% YoY to $3.96 in 2019. Sprint (S) is expected to report adjusted EPS of -$0.17 in fiscal 2019, which ends on March 31, 2020.

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