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AT&T Inc. (T)

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  • Jul. 12, 2013, 5:30 PM
    After-hours top gainers, as of 5:15 p.m.: LEAP +29%. SNCR +3%. AT +3%. SHFL +2%. CYCC +2%.
    After-hours top losers: CODE -3%. DWA -3%. GOGO -2%. RSH -2%. GILD -2%.
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  • Jul. 12, 2013, 5:23 PM
    More on AT&T/Leap: AT&T is paying $1.18B for Leap's equity, and assuming $2.8B in net debt. Leap shareholders will also receive net proceeds from the sale of spectrum Leap bought for $204M last August. Leap has 5M prepaid subs on a network covering 96M people, and AT&T says it will keep the Cricket brand and expand its reach. But this deal is mostly about acquiring Leap's spectrum (covers 137M people), much of which is unused and could be of use in AT&T's 4G buildout, especially in urban areas. Expect the FCC to closely scrutinize the deal; will new leadership yield a different outcome than the one for the T-Mobile deal? LEAP now +106.5% AH to $16.48, investors are betting on a higher bid. TMUS +4.1%. T -0.4%. (PR)
  • Jul. 12, 2013, 5:07 PM
    AT&T (T) is buying Leap Wireless (LEAP) for $15/share in cash. LEAP +88% AH to $15. Sprint (S) +1.7%. T-Mobile USA (TMUS) +0.4%.
  • Jul. 3, 2013, 10:07 AM
    Leap Wireless (LEAP +3.4%) jumps following an upgrade to Neutral from Macquarie's Kevin Smithen, which thinks the odds of a $10+/share acquisition by T-Mobile USA or Dish have grown. Smithen thinks the recent run-up in T-Mobile (TMUS) shares has made a deal easier for the #4 U.S. carrier to swallow, and considers the concentration of Leap's equity in a few holders "both a catalyst and an obstacle for a sale." He cautions Leap's "already eroding operating business" could be further pressured by T-Mobile's plans to enter Leap markets (via MetroPCS), but adds it could "drive Leap's Board and key holders to sell now."
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  • May 20, 2013, 11:54 AM
    Leap Wireless (LEAP -2%) slumps after Deutsche cuts shares to Sell while reiterating its $4 PT. The firm is worried about tougher prepaid competition from T-Mobile (via MetroPCS) and AT&T (via its new Aio prepaid brand), and a relatively high valuation (7.4x 2014E EV/EBITDA vs. 4.7x-7x for peers) in spite of "inferior growth prospects." Barclays launched coverage with an Underweight last Friday.
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  • May 17, 2013, 9:10 AM
    Leap Wireless (LEAP) -2.5% after Barclays starts coverage with an Underweight and $4 PT as part of a broader coverage launch of U.S. telecom service providers. Tower owners SBA (SBAC) and American Tower (AMT) have been started at Overweight, and so has Verizon (VZ). AT&T (T) and T-Mobile USA (TMUS) have been started at Equal Weight.
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  • May 9, 2013, 11:04 AM
    Yield-chasing investors should be wary of AT&T (T -1.5%, 4.8% yield) and Digital Realty (DLR -5.4%, 4.6% yield), warns Jonathan Jacobson at the Sohn conference. AT&T's wireline ops are a "melting ice cube," Jacobson declares (revenue fell 1.8% Y/Y in Q1), and mobile competition is intensifying. As for DLR, he asserts "the data center [colocation] business is a commodity business" (ed: true, but it has been growing quickly), and accuses DLR of understating recurring capex. He also considers its dividend unsustainable without fresh capital-raising efforts. In addition to Jacobson's remarks, DLR appears pressured by Rackspace's Q1 miss.
  • Apr. 29, 2013, 9:55 AM
    Leap Wireless (LEAP -5.1%) tumbles after JPMorgan's Philip Cusick downgrades shares to Underweight 6 months after cutting shares to Neutral. "The company's mostly 3G-level products and network seem more and more commoditized as MVNOs get more aggressive," writes Cusick, who worries Leap a 4G transition will require heavy capex. He also expects T-Mobile USA to bring the MetroPCS (PCS -0.3%) brand to many Leap markets by year's end. Leap, long propped up by M&A hopes, delivers its Q1 report tomorrow afternoon. Also: Morgan Stanley has resumed coverage on MetroPCS with an Equal-Weight.
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  • Apr. 24, 2013, 10:44 AM
    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%.
  • Apr. 15, 2013, 11:03 AM
    MetroPCS (PCS -3.6%) and Leap Wireless (LEAP -2.5%) slump in the wake of Dish Network's $25.5B offer for Sprint. The offer, which comes shortly after Bloomberg reported Dish had proposed a tie-up with T-Mobile USA (DTEGY.PK), removes T-Mobile/MetroPCS as an M&A target (for now, at least), and lowers the odds of an offer for Leap. Should a Dish/Sprint merger happen, it would also potentially create a tougher rival for the low-end carriers, though Sprint/SoftBank would arguably do the same.
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  • Apr. 10, 2013, 3:56 PM
    Leap Wireless (LEAP +3.1%) is closing with a solid gain after the WSJ reported Deutsche Telekom is preparing a higher bid for prepaid rival MetroPCS. Leap, which had 45.4% of its float shorted as of March 15 (that's actually down from late-2012 levels), has often risen and fallen on M&A speculation.
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  • Apr. 2, 2013, 5:30 PM
    Verizon (VZ) doesn't "currently have any intention to merge with or make an offer for Vodafone (VOD), whether alone or in conjunction with others," the telco announces, addressing an FT report about a possible joint bid with AT&T (T). Verizon does reiterate it "would be a willing purchaser" of Vodafone's 45% stake in Verizon Wireless, but that's pretty well-known. VOD -3.9% AH. VZ -0.8%. T -0.3%.
  • Apr. 2, 2013, 5:26 AM
    Verizon Communications (VZ) and AT&T (T) have reportedly been working on a $245B breakup bid for Vodafone (VOD) whereby Verizon would realize its long-held dream of gaining full control of Verizon Wireless and AT&T would obtain Vodafone's non U.S. assets. "Usually reliable people" tell the FT that Verizon and AT&T would offer 260p a share in what would be the biggest takeover in history. Vodafone shares are +4.8% at 195.64 pence in London.
  • Mar. 22, 2013, 2:55 PM
    BlackBerry (BBRY -6.9%) plummets as the WSJ reports AT&T (T) "doesn't appear to be highlighting" the Z10 on its launch day, or "giving it prominent shelf space at its stores." The paper observes "fewer than 20 people" arrived at two Manhattan AT&T stores to see the Z10, and that a San Francisco store chose to display it "at a back corner of the store, away from a large sign advertising the iPhone 5." (earlier)
  • Mar. 11, 2013, 10:05 AM
    AT&T (T) will sell the BlackBerry Z10 (BBRY +5.2%) for $200 with a 2-year contract, starting on March 22. AT&T will also sell BES 10 to enterprise accounts. The announcement seems to be giving a lift to heavily-shorted BlackBerry - Bloomberg reported of a March 22 Z10 launch date last week. (PR)
  • Feb. 20, 2013, 11:14 AM
    Leap Wireless (LEAP -7.7%) falls after missing Q4 revenue estimates and reporting a 337K subscriber net loss - that's worse than 269K net loss reported for Q3, and evidence of further share losses. Churn was 4.6%, down from Q3's 4.8% but up from 3.9% a year ago, and cost per gross add rose 17% Q/Q and 53% Y/Y to $363. ARPU rose slightly to $42.74, a 4G roaming deal has been signed with an unnamed carrier, and a dispute with Sprint (S) over a wholesale deal has been settled. Shares have been range-bound since last summer. CC underway (webcast). (PR)
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Company Description
AT&T Inc, through its subsidiaries and affiliates, provides wireless and wireline telecommunications services in the United States and internationally. The Company has three reportable segments: Wireless, Wireline, and Other.