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AT&T Is Gearing Up for Its New Streaming Service


Jul. 10 2019, Published 7:37 a.m. ET

AT&T’s new streaming service

On Tuesday, AT&T’s (T) WarnerMedia announced that its new direct-to-consumer streaming service would be named “HBO Max.” The service is scheduled to be launched commercially in the spring of 2020. The service is expected to include 10,000 hours of premium content. AT&T will have exclusive streaming rights to all 236 episodes of the popular series “Friends.” There will be similar on-launch exclusives for “Pretty Little Liars” and “The Fresh Prince of Bel Air.” However, AT&T hasn’t provided pricing information, which is a crucial element.

According to a CNBC report, “As the name implies, it includes a lot more than just content from HBO.” The report also said, “The service is just one of many new streaming products set to launch in the coming months, and consumers probably won’t be able to subscribe to all of them.”

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AT&T’s stock returns

AT&T stock has risen close to 2.2% since the beginning of July. On July 8, AT&T closed at $34.25, which was 0.2% lower than its previous closing price, 0.3% lower than its 52-week high of $34.37, and 27.8% higher than its 52-week low of $26.80. The company’s market cap is $250.0 billion.

Based on AT&T’s closing price on July 8, the company reported returns of 2.2% in the last five trading days, 5.4% in the trailing one-month period, and 4.8% in the trailing 12-month period. The company has reported returns of 20.0% since the beginning of 2019.

On Monday, AT&T stock was trading at 9.62x its fiscal 2019 estimated adjusted EPS of $3.56 based on its projected growth rate of 1.1%. The stock was trading at 9.43x its fiscal 2020 estimated adjusted EPS of $3.63 based on its projected growth rate of 2.0%, respectively. However, AT&T’s net sales are expected to rise 7.2% in fiscal 2019 and 0.3% in fiscal 2020.

AT&T’s estimates

Analysts expect AT&T’s revenues to see YoY (year-over-year) changes of 15.1% to $44.9 billion in the second quarter, -0.4% to $45.6 billion in the third quarter, and -0.4% to $47.8 billion in the fourth quarter. Analysts expect AT&T’s adjusted EPS to see YoY changes of -2.2% to $0.89 in the second quarter, 4.4% to $0.94 in the third quarter, and 3.5% to $0.89 in the fourth quarter.

AT&T reported an adjusted EPS of $0.86 on revenues of $44.8 billion in the first quarter. To learn more, read AT&T’s Q1 Earnings Triggered a Sell-Off.


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