After Tuesday’s closing bell, telecommunications company AT&T (NYSE:$T) is scheduled to post Q3 results.
Here’s what the market is forecasting:
The Wall Street consensus for the third quarter sits at $40.12 billion in revenue, 74 cents in EPS, and $13.395 billion in EBITDA.
Wells Fargo’s (NYSE:$WFC) Jennifer Fritzsche, who has an Outperform rating on AT&T’s shares, has similar expectations: $40.7 billion, 74 cents in earnings per share, and EBITDA of $13.4 billion.
Keep in mind this is based on the assumption that the Dallas, Texas-based company lost 100,000 postpaid subscribers in the quarter, while adding 260,000 prepaid subscribers.
Most investors seem to be concerned with the losses of video subscribers and Fritzsche believes this will be a big focus of the report. “Given cable and VZ’s recent commentary, the trend in linear video has become a clear focus for investors.”
She added, “While T participates in the OTT streaming initiatives with its DirectTV Now offer – there remains questions as to how many customers are actually paying for this.”
Further, seeing as there is speculation that Apple’s (NASDAQ:$AAPL) iPhone X will be delayed, Fritzsche said: “We expect a slower iPhone refresh cycle to impact adds in Q3 (this is consistent commentary with both TMUS and VZ).”
“We would not expect T to comment on thoughts around a possible TMUS / S merger (both cos have commented on potential of a merger as well as CNBC) – although we believe it is unlikely that T (or VZ) would oppose such a deal.”
Featured Image: depositphotos/kubais
