Earnings Preview: AT&T

AT&T (T) is expected to report Q2 earnings Wednesday, July 23, before market open, with a conference call scheduled for 10:00 am ET.

Guidance

Analysts are looking for EPS of 76c on revenue of $31.15B. The consensus range is 75c to 79c for EPS, and $30.95B to $31.48B for revenue, according to First Call.

Analyst Views

When AT&T reported its Q1 results it said it has "confidence" in its outlook, and is on track for mid to single-digit revenue growth in FY08. Phone companies historically have held up during economic downturns, however analysts some believe that AT&T's landline losses have increased due to competition from cable companies and cell phones. Most analysts are not concerned with AT&T's wireless business, which almost certainly has grown.

UBS downgraded AT&T to Neutral from Buy on June 16, citing the weak economy and increased wireless competition. The firm also lowered its target for the company to $39 from $42. Oppenheimer stated on July 7, it thinks the company can increase its consolidated revenue in the mid-single digit range, and reported that the company is not seeing any weakness in its enterprise or small business units. The firm forecasted EPS growth of close to 10% over five years and maintained its Outperform rating.

Comments

[Auto PartsPro]

Why does T seem like such a buy right now but everyone is down on it. What am i missing? The company is actually growing in this economy, has a great dividend and sees lots of growth. I want to pull the trigger but this is too easy. What gives?

[xander]

mutual fund redemptions force funds to sell stocks. picking on a slow grower is logical.