Market Overview

Morgan Stanley Sees AT&T's Qtr. As Mixed

Share:
Related T
Technical Alert: Investors Hang Up On AT&T After UBS Downgrade
12 Biggest Mid-Day Losers For Wednesday
Twitter Priced Too High, Says Mizuho, Names AT&T As Possible Buyer (Investor's Business Daily)

In a report published Wednesday, Morgan Stanley analyst Simon Flannery reiterated an Equal-Weight rating on AT&T (NYSE: T).

In the report, Morgan Stanley noted, “AT&T sold 2.9m smartphones under the Next equipment financing plan in 1Q14, of which 1.1m related to an early upgrade offer the company extended to existing subscribers. The Next accounting produces a Day 1 lift to revenues of around $240 per device versus the old subsidy model. This helped drive +52% y/y growth in wireless equipment revenues, contributing 75% of AT&T's consolidated revenue growth. On the flip side, wireless service revenue slowed to +2.2% y/y from +4.8% y/y in 4Q13, as customers moved rapidly to the new lower priced Mobile Share plans.

"Postpaid net adds surprised positively at 625k for the quarter, but we estimate that some 500k of these adds were tablets, once prepaid switching is accounted for. In addition to the revenue impacts, expenses were elevated due to higher promotional activity, as well as content costs and other pressures in the wireline business.”

AT&T closed on Tuesday at $36.29.

Latest Ratings for T

DateFirmActionFromTo
Sep 2016UBSDowngradesBuyNeutral
Sep 2016HSBCUpgradesReduceHold
Jul 2016CitigroupMaintainsBuy

View More Analyst Ratings for T
View the Latest Analyst Ratings

Posted-In: Morgan Stanley Simon FlanneryAnalyst Color Reiteration Analyst Ratings

 

Related Articles (T)

View Comments and Join the Discussion!