AT&T (T, Financial) anticipates a rise in internet service additions during the latter half of the year compared to the first half. The company is optimistic about enhancing its subscriber base, driven by strategic initiatives and market demand. This forecast reflects AT&T's ongoing efforts to expand its internet service offerings and capture a larger share of the market.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 27 analysts, the average target price for AT&T Inc (T, Financial) is $29.01 with a high estimate of $32.00 and a low estimate of $19.00. The average target implies an upside of 5.80% from the current price of $27.42. More detailed estimate data can be found on the AT&T Inc (T) Forecast page.
Based on the consensus recommendation from 31 brokerage firms, AT&T Inc's (T, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for AT&T Inc (T, Financial) in one year is $19.47, suggesting a downside of 28.99% from the current price of $27.42. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the AT&T Inc (T) Summary page.
T Key Business Developments
Release Date: April 23, 2025
- Total Revenue Growth: Up 2% year-over-year.
- Service Revenue Growth: Increased by 1.2%.
- Adjusted EBITDA Growth: Up 4.4% year-over-year.
- Adjusted EPS: $0.51, $0.03 higher than the prior year excluding DIRECTV.
- Free Cash Flow: $3.1 billion, up more than $350 million on a comparable basis.
- Capital Investment: $4.5 billion in the first quarter.
- Mobility Revenue Growth: Up 4.7% year-over-year.
- Mobility Service Revenue Growth: Increased by 4.1%.
- Postpaid Phone Net Adds: 324,000 in the first quarter.
- Postpaid Phone Churn: 0.83%, up 11 basis points from the previous year.
- Mobility EBITDA Growth: Increased by 3.5% year-over-year.
- Consumer Wireline Revenue Growth: Up 5.1% year-over-year.
- Fiber Revenue Growth: Increased by 19%.
- Fiber Net Adds: 261,000 in the first quarter.
- Business Wireline Revenue Decline: Down approximately 9% year-over-year.
- Net Debt Reduction: Reduced by about $1 billion in the first quarter.
- Net Debt to Adjusted EBITDA Ratio: 2.63 times at the end of the quarter.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- AT&T Inc (T, Financial) reported growth in consolidated service revenue and adjusted EBITDA, driven by strong postpaid phone and fiber net additions.
- The company achieved growth in adjusted EPS and free cash flow, excluding DIRECTV, consistent with their March outlook.
- AT&T Inc (T) is on track to surpass its target of passing over 30 million total locations with its fiber network by mid-year 2025.
- The company plans to commence share repurchases during the second quarter, indicating confidence in its financial guidance.
- AT&T Inc (T) continues to see strong performance in its Mobility and Consumer Wireline businesses, offsetting pressures in Business Wireline.
Negative Points
- The macro environment presents diminished visibility, with potential impacts from announced tariffs on smartphones and network equipment.
- Postpaid phone churn increased due to normalization of customers reaching the end of their equipment promotional financing periods.
- Business Wireline revenues declined approximately 9% year-over-year, primarily due to pressures on legacy services.
- The company faces a competitive wireless market, with shifts in offers and promotions impacting churn.
- There is a potential for increased costs due to tariffs, which could affect consumer and business demand.
