- AT&T has narrowed its full-year adjusted Earnings Per Share (EPS) forecast to a range of $2.20 to $2.25, slightly revising the previous lower end of $2.15.
- The company expects capital expenditure at the higher end of its forecast between $21 billion to $22 billion, surpassing earlier estimates of $19.48 billion.
- Free cash flow for the year is maintained at $17 billion to $18 billion, with estimates suggesting $17.47 billion.
- Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (Ebitda) is expected to grow by at least 3%.
- For 2025, AT&T forecasts free cash flow of at least $16 billion and capital expenditure around $22 billion, exceeding earlier estimates of $19.54 billion.
- 2025 adjusted EPS is projected between $1.97 and $2.07, with an adjusted Ebitda increase of at least 3%.
- An initial $10 billion stock repurchase is authorized, expected to be completed by end of 2026, with an additional $10 billion planned for 2027.
- Excluding DirecTV, the adjusted EPS forecast for 2024 is $1.90 to $1.95, with DirecTV contributing approximately 30 cents per share.
- From 2025 to 2027, AT&T anticipates consolidated service revenue and adjusted Ebitda growth annually in the low single-digit range.
- The capital investment is projected to stay around $22 billion annually from 2025 to 2027.
- Expected annual free cash flow growth is approximately $1 billion, aiming for more than $18 billion by 2027.
- By 2027, adjusted EPS growth is expected to accelerate to a double-digit percentage rate.
- The company predicts a financial capacity of over $50 billion in the next three years, intending to return over $40 billion to shareholders via dividends and buybacks.
- Current annualized dividend remains at $1.11 per share, with a plan to distribute more than $20 billion in total dividends and allocate around $20 billion for share repurchases from 2025 to 2027.
- An additional $10 billion in financial flexibility is expected for strategic growth investments, debt repayment, or further dividend and share repurchases.
At&T Inc on Smartkarma
Analysts on Smartkarma are bullish on AT&T Inc., as highlighted by research reports from Baptista Research and Value Investors Club. Baptista Research‘s report “AT&T Inc.: An Insight Into Its Fixed-Line Network Synergies” emphasizes the company’s strategic focus on leadership in converged connectivity through investments in 5G and fiber networks. The report mentions AT&T’s sustainable subscriber growth in mobility and strong additions in broadband, with significant growth in the 5G subscriber base.
In a separate report by Baptista Research titled “AT&T Inc.: Enhanced Fiber Infrastructure Expansion & Strategic Deployment of Internet Air Taking Them Forward! – Major Drivers,” the analysts note mixed results in Q2 2024 as AT&T expands its wireless and broadband sectors. Despite minor downshifts in certain areas, the company’s investment-driven growth strategy led to robust additions of high-value wireless and broadband subscribers, including 419,000 postpaid phone subscribers.
A look at At&T Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 5 | |
| Growth | 5 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 4.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
AT&T Inc. is positioned for a promising long-term outlook based on the Smartkarma Smart Scores. The company excels in areas such as dividend and growth, receiving top scores of 5 in both categories. This indicates that AT&T is strong in rewarding shareholders with dividends and shows potential for future expansion and development.
While the company scores lower in areas like resilience, with a score of 2, and momentum with a score of 4, the overall outlook remains positive. AT&T Inc., a communications holding company, offers a wide range of services including phone, wireless, data communications, Internet access, television, and more. With strong scores in key factors like value, dividend, and growth, AT&T Inc. has the potential for long-term success in the ever-evolving communications industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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