T benefits from focus on 5G and fiber, but intense competition from behemoths and a steady decline in legacy services remain concerns.
AT&T's preferred shares offer an excellent risk/reward ratio for income-focused portfolios, with strong cash flow performance and a low payout ratio ensuring dividend safety. Despite increased operating expenses, AT&T's net profit rose to $0.61 per share (including non-recurring items), with adjusted net profit up 6% year-over-year. AT&T's 2025 guidance remains strong, expecting $16B+ in free cash flow and planning $3B in share buybacks by year-end.
AT&T has continued to see its share price grow, but still has room to continue growth. The company is growing its fiber business while generating strong cash flow. Overall, the company will be able to direct its cash flow towards both dividends and share repurchases.
AT&T (T -0.16%) stock has been a strong performer, surging 64% over the last year. But Tigress Financial analyst Ivan Feinseth sees more upside following AT&T's first-quarter earnings report.
For the big three players in the United States telecom sector, Q1 earnings are in the books. Verizon Communications NYSE: VZ, T-Mobile NASDAQ: TMUS, and AT&T NYSE: T are by far the most prominent players in this industry, and they compete fiercely.
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T is benefiting from solid demand for its postpaid services, while with a healthy cash flow and network expansion, VZ is strengthening its foothold in the market.
AT&T (T) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
AT&T Inc. NYSE: T delivered a solid first-quarter 2025 earnings report that showcased significant momentum in its core connectivity businesses, underpinning a cautiously optimistic outlook for the telecommunications giant. While there was a slight miss on adjusted earnings per share, it drew only limited concern.
AT&T reported Q1 earnings that fell short of EPS expectations, while revenues beat the consensus estimate by a good margin. AT&T added 261k new broadband subscribers in Q1'25 and generated $3.1B in free cash flow, covering its $2.0B dividend. Broadband ARPU is growing. I maintain a strong buy rating due to AT&T's value proposition driven by free cash flow-backed dividends and accelerating debt repayments.
AT&T's stock rally seems to have gone way too far over the past year, even though progress is being made. The premium valuation to Verizon is also partially justified, but not to the current extent. Sector rotation towards lower risk areas of the equity market would continue to be a tailwind, but it does not constitute a buy rating.
Following significant capital appreciation in recent months, AT&T stock has become fully valued. In this note, we briefly analyze AT&T's Q1 2025 financial results and re-run T stock through TQI's Valuation model. I am downgrading AT&T stock to a "Hold" rating.