A month has gone by since the last earnings report for AT&T (T) . Shares have added about 9.2% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is AT&T due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. T Beats Q4 Earnings Estimates on Solid Subscriber GrowthAT&T reporte ...

Core Viewpoint - AT&T has significantly outperformed the market with total returns exceeding 63% over the past year, contrasting with the S&P 500's 24% increase, indicating that strong investment returns can arise from unexpected sources [2][4]. Financial Performance - AT&T's recent success is attributed to its financial improvements after a decade of challenges, including a substantial reduction in debt from approximately $200 billion in 2022 to $123 billion [3][4]. - The company's P/E ratio has improved from a low of 5.4 in 2022 to over 12 times the 2025 earnings estimates, reflecting enhanced market sentiment [4][10]. Dividend and Cash Flow - AT&T maintains a dividend payout ratio of about 44% of its free cash flow, which was $18.5 billion over the past four quarters, allowing for continued debt repayment and a dividend yield of over 4.2% [5][9]. - The company is popular among income-focused investors, particularly retirees, due to its consistent dividend payments [6]. Growth Prospects - Despite recent gains, AT&T's growth remains modest, with a 3.3% year-over-year revenue increase in its core wireless business and total revenue growth of only 0.9% [7]. - Analysts project an average earnings growth of just 4% annually over the next three to five years, indicating limited growth potential [7]. Market Sentiment and Valuation - The stock's rally is largely attributed to an overly depressed valuation rather than strong growth fundamentals [8]. - With a current P/E ratio of about 12, the stock is considered fairly valued for a business with low-single-digit earnings growth, suggesting potential overvaluation if the price continues to rise [10]. Investment Outlook - AT&T is now viewed as a hold, as the stock may not present compelling value for bargain hunters, and dividend investors might find better yields elsewhere [11].

Core Points - Cameron John Wagenius pleaded guilty to hacking AT&T and Verizon, stealing a significant amount of phone records from these companies [1][2] - The hacking incidents are linked to broader data breaches involving multiple companies, including Snowflake, indicating a larger trend of cyber threats in the telecommunications and cloud computing sectors [3][5] Group 1: Legal Proceedings - Wagenius faces two counts of "unlawful transfer of confidential phone records information," with potential penalties including a maximum fine of $250,000 and up to ten years in prison for each count [2] - The U.S. government has connected Wagenius's charges to the indictment of other alleged hackers, suggesting a coordinated effort in the cyberattacks [3] Group 2: Impact on Companies - The breaches at AT&T and Verizon are part of a larger pattern of cyber intrusions that have affected at least 160 companies, including major firms like LendingTree, Santander Bank, and Ticketmaster [5] - U.S. attorney Tessa Gorman indicated that the breaches share overlapping evidence and legal questions, highlighting the interconnected nature of these cyber incidents [4]

Core Insights - AT&T will host a series of fireside chats featuring CEO John Stankey and CFO Pascal Desroches, which will be webcast live and available for replay [3][7] - The events are scheduled for the Barclays Communication and Content Symposium on February 25, the Morgan Stanley Technology, Media & Telecom Conference on March 4, and the Deutsche Bank Media, Internet & Telecom Conference on March 11 [7] Company Information - AT&T serves over 100 million U.S. families and nearly 2.5 million businesses, providing services from traditional phone calls to advanced 5G wireless and multi-gig internet offerings [6] - The company is on track to meet its 2025 and multi-year financial and operational guidance as shared during its fourth quarter 2024 earnings call and 2024 Analyst & Investor Day [7]

Core Points - AT&T has elected John Stankey as the new Board Chair, succeeding William E. Kennard, who will take on the role of Lead Independent Director [1][2] - The change in leadership is part of AT&T's three-year strategic and capital allocation plan, aimed at enhancing governance agility and long-term shareholder value [2] Company Overview - AT&T serves over 100 million U.S. families and nearly 2.5 million businesses, providing services from traditional phone calls to advanced 5G wireless and multi-gig internet offerings [3]

Subscriber and Customer Base - AT&T served 118 million Mobility subscribers as of December 31, 2024, including 89 million postpaid, 19 million prepaid, and 10 million through resellers[33]. - The Consumer Wireline business unit serves approximately 14.1 million customers, including 9.3 million fiber broadband subscribers as of December 31, 2024[41]. - AT&T provides postpaid and prepaid wireless services to approximately 24 million subscribers in Mexico[46]. - AT&T had over 9.3 million fiber consumer wireline broadband customers, adding 1.0 million during 2024[30]. - AT&T had 15.3 million broadband connections at the end of 2024, compared to 15.1 million in the prior year[30]. Financial Performance - The Communications segment provided approximately 97% of 2024 segment operating revenues, accounting for substantially all of the total segment operating income[33]. - Wireless service accounted for 53% of total consolidated operating revenues in 2024, up from 52% in 2023 and 50% in 2022[49]. - The Latin America segment contributed approximately 3% to total segment operating revenues in 2024, with less than 1% of total segment operating income[45]. - The percentage of total consolidated operating revenues from business services decreased to 15% in 2024 from 17% in 2023[49]. - Research and development expenses were $955 million in 2024, slightly up from $954 million in 2023, but down from $1,236 million in 2022[63]. Network and Technology - The company plans for about 70% of its wireless network traffic to flow across open-capable platforms by late 2026, enhancing operational efficiencies[25]. - AT&T's network covers over 440 million people with 4G LTE and over 314 million with 5G technology in North America[29]. - The deployment of 5G technology is expected to enable massive deployment of devices connected to the internet, enhancing data service delivery[26]. - The company expects to continue investing significantly in expanding network capacity and obtaining additional spectrum to support long-term needs[27]. - AT&T agreed to purchase select spectrum licenses from United States Cellular Corporation for approximately $1,000 million, subject to closing conditions[28]. Operational Changes - The company is actively working to exit legacy copper network operations, reducing network access lines in service from 4.2 million to 3.3 million year-over-year[31]. - The company aims to capitalize on the growing demand for broadband driven by streaming, augmented reality, and AI technologies[24]. - The company is experiencing increasing demand for high-speed broadband services due to changes in video viewing preferences and remote learning trends[41]. Competition and Market Position - The company continues to face substantial competition in its wireless businesses from both traditional and nontraditional competitors[58]. - AT&T faces substantial competition in its wireless business, particularly from América Móvil in Mexico[59]. Employee and Labor Relations - The company employed approximately 140,990 persons as of December 31, 2024[64]. - The main labor contract covering about 9,000 employees is set to expire in April 2025[66]. - The company is committed to pay equity and competitive benefit programs for its employees[68]. - No single customer accounted for 10% or more of consolidated revenues in 2024, 2023, or 2022[57].

Group 1 - The article maintains a buy rating on AT&T, citing improvements in both top and bottom-line performances as the primary argument for this position [1] - The positive performance of AT&T is attributed to successful strategies implemented by the company [1] Group 2 - The author identifies as a young private investor focused on growth companies and the transformative potential of technology in the coming decade [1]

Core Viewpoint - The article highlights two strong dividend stocks, Waste Management and AT&T, as potential sources of passive income for investors. Group 1: Waste Management - Waste Management (WM) is a leading supplier of waste management services in North America, making it a reliable dividend stock due to the consistent demand for garbage collection [2][3]. - The company operates a vast network of landfills and transfer stations across the U.S. and Canada, facing limited competition due to homeowner opposition and strict regulations [3]. - Waste management is considered recession-resistant, as the need for trash collection persists during economic downturns, while population and economic growth are expected to drive disposal volumes and earnings higher in the coming decade [4]. - WM's growth strategy includes acquisitions, exemplified by its $7.2 billion purchase of Stericycle, which is anticipated to enhance cash flow generation in the future [5]. - WM has a 22-year history of increasing dividends, with a current yield of 1.5% [6]. Group 2: AT&T - AT&T is a telecommunications giant favored by dividend investors, currently offering a substantial yield of 4.5% [7]. - The company benefits from providing bundled wireless and broadband internet services, which appeals to consumers seeking simplicity and cost savings [8]. - In the fourth quarter, AT&T gained 482,000 postpaid phone subscribers and 307,000 fiber customers, marking its 20th consecutive quarter of adding at least 200,000 broadband accounts [9]. - These customer gains are expected to drive free cash flow to over $18 billion by 2027, up from approximately $16 billion in 2025, with plans for $40 billion in dividends and share repurchases over the next three years [10]. - AT&T aims to reduce debt using its cash flow, targeting net debt-to-adjusted earnings goals by the first half of 2025, which should lower financing costs and enhance profits [11]. - The stock is currently valued at less than 11 times its projected free cash flow in 2025, presenting a favorable investment opportunity [12].

While much of the investing world has been focused on artificial intelligence, one under-the-radar stock winner over the past year has been AT&T (T -0.08%). Shares of the telecom giant are up by more than a third in the past 12 months. The stock got another boost after the company posted solid fourth-quarter results and indicated it would implement a big buyback.Let's take a closer look at AT&T's Q4 results to see if the stock is still a buy.Solid subscriber growth and a big buyback aheadAT&T continues to s ...

It's been a while since I last covered AT&T (NYSE: T ) as I've paid much closer attention to its peers Verizon ( VZ ) and T-Mobile ( TMUS ) in recent times. But AT&T's price performance over theContributing analyst to the iREIT+Hoya Capital investment group. The Dividend Collectuh is not a registered investment professional nor financial advisor and these articles should not be taken as financial advice. This is for educational purposes only and I encourage everyone to do their own due diligence. I'm a Navy ...