Did AT&T Stock Just Reach Its Bottom After Q3 Earnings?

TL;DR

AT&T's Q3 earnings exceeded expectations with $30 billion in revenue, indicating a potential bottom for the stock after years of decline. While the company showed strong fiber revenue growth and cost-cutting measures, high debt and the possibility of rising interest rates remain concerns for investors. Setting a stop loss at $14 per share could help manage risk.

Transcript

has a T stock finally bottomed and I mean we're talking after going on a downtrend for over five years now has this stock finally turned the corner is it going to start trending up we'll talk about that from a technical perspective but also in context of those Q3 earnings that came out before the Bell today what is going on investors hopefully guys... Read More

Key Insights

• 💓 AT&T's Q3 earnings beat expectations, showing slow revenue growth but offset by cost cuts and strong performance in AT&T Fiber.
• ✋ The stock has potential for a turnaround after years of decline, but its high debt and risk of higher interest rates may pose challenges for the company.
• ✋ AT&T's dividend yield is high, but investors should consider the potential impact of refinancing debt at higher rates on future earnings.
• 😫 The stock's current price indicates a potential bottom, but it is recommended to set a stop loss at $14 per share to manage risk.
• 🦺 AT&T's stock could be included in dividend portfolios, but retirees may prefer safer investments given the volatility in yields.
• ✋ Consider other high-dividend stocks like Verizon and various REITs as alternatives to AT&T in a dividend portfolio.

Questions & Answers

Q: How did AT&T's Q3 earnings perform compared to expectations?

AT&T's Q3 earnings beat expectations, with revenue of $30 billion and exceeding earning estimates. They also raised their full-year guidance for adjusted EPS.

Q: What factors contributed to AT&T's revenue growth?

AT&T's revenue growth was slow, but they offset it with cost cuts. Additionally, their AT&T Fiber had a strong quarter with over 200,000 net adds, leading to higher Broadband revenues.

Q: How has AT&T's stock performed in recent years?

AT&T's stock has been on a downtrend for over five years, experiencing a significant decline. However, after reporting better-than-expected earnings, there are signs of a potential turnaround.

Q: What are the challenges AT&T faces due to its high debt?

AT&T carries a significant amount of debt, more than the entire value of the company. This poses a risk if interest rates rise, as the company will have to refinance debt at higher rates, affecting earnings per share.

Summary & Key Takeaways

• AT&T's Q3 earnings exceeded expectations, with revenue of $30 billion and beat earning estimates. The company offset slow revenue growth with cost cuts.

• The company's AT&T Fiber had a strong quarter with over 200,000 net adds, leading to higher Broadband revenues.

• AT&T's stock has experienced a significant downtrend over the past six years but showed signs of a potential turnaround after reporting better-than-expected earnings.