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AT&T (T -5.4%) gets slammed as 3 downgrades arrive in response to its Q1 revenue miss, the...

AT&T (T -5.4%) gets slammed as 3 downgrades arrive in response to its Q1 revenue miss, the result of soft wireless subscriber adds and declining wireline revenue. There might also be concerns about whether lowering 2014/2015 capex targets (to fuel more buybacks?) is a bright idea in light of flagging growth. AT&T's 296K Q1 postpaid net adds (boosted by tablets) and 184K prepaid net losses are easily worse than Verizon's respective net adds of 677K and 43K. On the earnings call, AT&T mostly blamed wireline weakness on macro and government issues, rather than legacy voice service declines. VZ -1.9%. CTL -4%. WIN -2.2%. FTR -1.1%.
Comments (8)
  • activetrader
    , contributor
    Comments (38) | Send Message
     
    As they say, "when money's leaving the market..." Personally I view this as an over reaction on the part of a few analysts and some program selling today. Longer term, this may be a buying opportunity.
    24 Apr 2013, 10:59 AM Reply Like
  • oppark
    , contributor
    Comment (1) | Send Message
     
    Shocked I say. Shocked...analysts overreacting. Who knew?
    26 Apr 2013, 03:32 AM Reply Like
  • moishep
    , contributor
    Comments (23) | Send Message
     
    These downgrades almost always provide great buying opportunities. I've wanted to add to my T position, but I've been waiting for a market selloff. Not waiting any longer.
    24 Apr 2013, 11:40 AM Reply Like
  • toothdoc7
    , contributor
    Comments (3) | Send Message
     
    why was the stock pushed up on Monday and Tuesday when there was a chance of a poor showing with its landline subscribers?
    24 Apr 2013, 12:26 PM Reply Like
  • mairez
    , contributor
    Comments (6) | Send Message
     
    I'm a value investor. I bought FTR primarily for it's hefty dividend and also for its low price. I own some FTR in all of my accounts. I would not add to my holdings but I'm a long way from selling. The dividend is safe for at least another year.
    24 Apr 2013, 12:30 PM Reply Like
  • chis59
    , contributor
    Comments (14) | Send Message
     
    I agree that T is strong, but some things have me nervous. The postpaid phone base slipped (-74,000), as well as softer margin growth and FCF growth than VZ. I don't think this was a great quarter for ATT.
    24 Apr 2013, 12:31 PM Reply Like
  • bbladel
    , contributor
    Comment (1) | Send Message
     
    It's a sign the market is getting too high when a sell off such as this occurs at the slightest bad news.
    24 Apr 2013, 06:23 PM Reply Like
  • alanddee
    , contributor
    Comments (24) | Send Message
     
    I have a fair share of at&t and can tell you now that there is very few company's that are as strong know that a lot of people complain about the service had one cable company that had everything AT&T has except about every three months they would raise their prices and wouldn't tell you why. I have AT&T U-VERSE service and its the best ,so hang in there and remember if you think there's a better stock than AT&T sell it and buy something and see what happens.
    17 May 2013, 03:08 AM Reply Like
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