AT&T (T) Stock Q2 Earnings & Technical Analysis

TL;DR

AT&T reported Q2 earnings with revenues of $29.6 billion, showing a 17% decline year-over-year due to the exclusion of Warner Brothers Media. Although the stock has been on a downward trend, the company aims to reduce debt and improve cash flow.

Transcript

seems like every time we do a video on att the stock is going down that is the case again today after reporting q2 earnings before the bell what is going on everybody hopefully guys are doing well out there time to talk about att incorporated ticker symbol t after reporting q2 earnings before the bell with revenues coming in at 29.6 billion dollars... Read More

Key Insights

• 🛀 AT&T's Q2 earnings showed a decline in revenues, mainly due to the exclusion of Warner Brothers Media.
• 🥶 The company aims to improve its free cash flow by reducing debt and interest expenses.
• 🐢 Future revenue estimates for AT&T remain modest, with slow growth anticipated in the upcoming quarters.
• 📉 Despite the stock's downward trend, AT&T offers a high dividend yield and is considered a value stock.
• 💐 AT&T's focus on debt reduction and steady cash flow aligns with its long-term strategy.
• ❓ The technical analysis suggests that the stock is in a downtrend and may continue to decline.
• 👨‍💼 The company's efforts to pay down debt have resulted in a reduced cash balance, but also a more streamlined and manageable business.

Questions & Answers

Q: Why did AT&T's Q2 revenues decline by 17% year-over-year?

The decline in revenues can be attributed to the exclusion of Warner Brothers Media, which was previously included in the financials. Comparing the standalone AT&T business, the revenue was relatively flat year-over-year.

Q: How does AT&T plan to improve its free cash flow?

Despite lowering its forecast to $14 billion, AT&T aims to achieve this target by reducing interest expense through debt reduction. The company has been successful in paying down debt and expects to continue doing so.

Q: Will AT&T experience significant growth in the upcoming quarters?

Analyst estimates suggest that AT&T's growth will remain slow, with a year-over-year decline of over 20% projected for the foreseeable future. This is largely due to the exclusion of revenue from Warner Brothers Media.

Q: What has been the impact of AT&T's debt reduction efforts?

AT&T has made progress in reducing its long-term debt, with the amount declining from $151 billion to $129 billion. This reduction should help lower the company's interest expense and improve cash flow.

Summary & Key Takeaways

• AT&T's Q2 revenues were $29.6 billion, a 17% decline compared to the previous year, primarily due to the exclusion of Warner Brothers Media from the financials.

• The company has adjusted its earnings estimates, with slow growth expected in the upcoming quarters and revenues projected to be around $29 billion to $31 billion.

• AT&T lowered its free cash flow forecast to $14 billion from $16 billion, raising concerns among investors. However, the company aims to reduce debt and improve cash flow to achieve this target.