The telecom sector is bracing for a busy week as three of its giants, AT&T (T), Verizon Communications (VZ), and T-Mobile US (TMUS), are scheduled to release their earnings reports. Investors are keenly watching to see how each company is navigating the evolving landscape of wireless communication, particularly amidst heightened competition and rising investment in 5G infrastructure.
Verizon Leads the Charge:
Kicking off the earnings season for the telecom trio is Verizon, which is expected to report its results on Tuesday morning. Analysts are projecting an earnings per share (EPS) of $1.18 and revenue of $33.43 billion, according to estimates from Benzinga Pro. These figures would represent a slight increase from Verizon’s previous quarter’s performance, where the company reported revenue of $32.79 billion and EPS of $1.15, largely in line with expectations. Scotiabank analyst Maher Yaghi remains optimistic, maintaining a Sector Perform rating on Verizon and raising the price target from $46.50 to $47.25, reflecting a positive outlook for the company’s future.AT&T and T-Mobile to Follow:
The spotlight then shifts to AT&T and T-Mobile on Wednesday. AT&T is set to report its results before the market opens, while T-Mobile’s announcement is expected after market close. Analysts are anticipating AT&T to report EPS of 57 cents and revenue of $30.44 billion, maintaining a similar pace as the second quarter, when the company reported revenue of $29.79 billion and EPS of 57 cents. AT&T’s recent announcement of ratified collective bargaining agreements covering 23,000 employees might also impact investor sentiment. Wells Fargo analyst Eric Luebchow remains bullish on AT&T, maintaining an Overweight rating and raising the price target from $22 to $25 ahead of earnings.For T-Mobile, analysts are projecting revenue of $20 billion and EPS of $2.42. This would mark an increase from the company’s most recent quarter, where it reported EPS of $2.28 and revenue of $19.7 billion. T-Mobile has also raised its guidance for 2024 postpaid net customer growth, indicating confidence in its market share expansion. While Scotiabank’s Maher Yaghi downgraded T-Mobile from Sector Outperform to Sector Perform, he still raised the price target from $215.50 to $236, reflecting a positive long-term view despite some concerns.
Market Performance:
As the earnings announcements approach, AT&T shares were down 0.34% at $21.78, Verizon shares were down 0.43% at $43.80, and T-Mobile shares were down 0.06% at $223.07, according to data from Benzinga Pro.This week’s earnings releases will be crucial for gauging the future trajectory of these telecom titans. Investors will be looking for insights into each company’s strategies for navigating the evolving wireless landscape, particularly in areas such as 5G expansion, subscriber growth, and network investments. The results will have a significant impact on the sector’s performance in the months to come.