Read Raymond James' Take On AT&T Ahead Of Its 2Q Results

Read Raymond James' Take On AT&T Ahead Of Its 2Q Results
  • Raymond James analyst Frank Louthan maintained AT&T Inc T with an Outperform and a $26 price target ahead of its 2Q22 results.
  • With the WarnerMedia spin-off now closed, he believes the story is far more straightforward and that this will attract investors. 
  • He previously discussed that following the Netflix, Inc NFLX miss, eliminating volatile subscriber metrics from DTV and Warner Bros. Discovery, Inc WBD asset sales is highly advantageous. 
  • Additionally, he believes simple recurring revenue names with solid dividends like AT&T were better performers in a problematic tape, and with macro issues impacting the market, he considers AT&T can outperform.
  • Following recent commentary on the conference circuit and his conversations with management, he made slight adjustments ahead of 2Q22 earnings scheduled for July 21. 
  • Specifically, he took his 2Q22 mobility revenue estimate to $20.41 billion from $20.40 billion, with postpaid net adds remaining constant at 416,000 for 2Q22.
  • Q2 is a bit of an unknown as the WBD stub impacts the numbers still, plus the increased costs and price moves. 
  • He believes higher costs from inflationary forces, the lost CAF II, and the winding down of FirstNet reimbursements pressuring EBITDA more than offset the price hikes at T.
  • Price Action: T shares traded higher by 0.21% at $21.14 on the last check Thursday.
  • Photo by Tdorante10 via Wikimedia Commons

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