AT&T (NYSE:T) announced mixed first-quarter results with adjusted earnings of $0.55 per share as compared to earnings of $0.60 per share in the same period last year. Analysts were expecting earnings of $0.53 per share.
The telecommunication major generated Q1 revenues of $30 billion, which marked a decline of 0.4% year-over-year, and fell short of consensus estimates of $30.5 billion. The company’s mobility services business saw revenues of $16 billion, which were up by 3.3% year-over-year in the first quarter. AT&T’s wireless postpaid net additions were 349,000 in Q1, compared to net additions of 424,000 in the same period last year.
Looking forward, in FY24, AT&T expects its wireless service revenues to grow in the range of 3%, while broadband revenues are likely to increase by more than 7% year-over-year. The company has projected adjusted earnings in the range of $2.15 to $2.25 per share in FY24.
What Is the Forecast for T Stock?
Analysts remain cautiously optimistic about T stock, with a Moderate Buy consensus rating based on nine Buys and six Holds. Year-to-date, T stock has inched higher by more than 1.6%, and the average T price target of $20.89 implies an upside potential of 26.6% from current levels. However, these analyst ratings are likely to change following AT&T’s earnings today.
