Overview of AT&T 4th quarter 2021 earnings report
Category: AT&T
Date: 27 January 2022 Stock price of AT&T: $24.25 Market Capital of AT&T: $173.2 billion We take a look at the 4th quarter 2021 earnings report of AT&T, a global telecommunications and media company. For the quarter the group reported revenues of $40.1 billion and net income of $5 billion
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A year and a half ago, we began simplifying our business to reposition AT&T for growth and we’re extremely pleased with how we’ve executed on that commitment - John Stankey, AT&T CEO."
More About AT&T (T)
AT&T Inc. (NYSE:T) is a diversified, global leader in telecommunications, media and entertainment, and technology. AT&T Communications provides more than 100 million U.S. consumers with communications and entertainment experiences across mobile and broadband. Plus, it serves high-speed, highly secure connectivity and smart solutions to nearly 3 million business customers. WarnerMedia is a leading media and entertainment company that creates and distributes premium and popular content to global audiences through its consumer brands, including: HBO, HBO Max, Warner Bros., TNT, TBS, truTV, CNN, DC Entertainment, New Line, Cartoon Network, Adult Swim and Turner Classic Movies. AT&T Latin America provides wireless services to consumers and businesses in Mexico.
Overview of AT&T (T) 4th quarter 2021 earnings
Fourth-Quarter Consolidated Results
- Consolidated revenues of $41.0 billion
- Reported EPS of $0.69 compared to ($1.95) in the year-ago quarter, which included noncash charges
- Adjusted EPS of $0.78 compared to $0.75 in the year-ago quarter
- Cash from operations of $11.3 billion
- Capital expenditures of $3.8 billion; gross capital investment1 of $4.9 billion and cash content spend of $4.6 billion
- Free cash flow of $8.7 billion
AT&T management commentary on their 4th quarter 2021 earnings report
DALLAS, January 26, 2022 — AT&T Inc. (NYSE:T) reported fourth-quarter results that showed continuing customer growth in wireless, fiber and HBO Max. For the full year, AT&T continued to lead the industry in postpaid phone net adds, gaining more subscribers than in the prior 10 years combined; added more than 1 million fiber subscribers — the fourth consecutive year in which it has added 1 million or more subscribers; and surpassed the high end of its guidance for global HBO Max and HBO subscribers with nearly 74 million subscribers at the end of 2021. “A year and a half ago, we began simplifying our business to reposition AT&T for growth and we’re extremely pleased with how we’ve executed on that commitment,” said John Stankey, AT&T CEO.
“We ended 2021 the way we started it – by growing our customer relationships, 2 running our operations more effectively and efficiently, and sharpening our focus. Our momentum is strong and we’re confident there is more opportunity to continue to grow our customer base and drive costs from the business.
“We ended 2021 the way we started it – by growing our customer relationships, 2 running our operations more effectively and efficiently, and sharpening our focus. Our momentum is strong and we’re confident there is more opportunity to continue to grow our customer base and drive costs from the business.
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“We’re at the dawn of a new age of connectivity. Our focus now is to be America’s best connectivity provider and also ensure our media assets are positioned to grow and truly become a global media distribution leader. Once we do this, we’ll unlock the true value of these businesses and provide a great opportunity for shareholders.”
AT&T stock price history over the last 5 years
The image below shows the stock price history of AT&T (T) over the last 5 years. And its not been a good time for AT&T stockholders with the stock decreasing sharply by -41.9% over the last 5 years.
The stock of AT&T is trading at closer to its 52 week low than it is to its 52 week high which is a clear indication that the short term sentiment and momentum of AT&T stock is negative at this point in time.
The stock of AT&T is trading at closer to its 52 week low than it is to its 52 week high which is a clear indication that the short term sentiment and momentum of AT&T stock is negative at this point in time.
Latest stock valuation of AT&T
So what is AT&T stock worth based on their 4th quarter 2021 earnings report? Based on their earnings report our valuation model provides a target price (full value price) for AT&T at $51.70 a stock.
We therefore believe the stock of AT&T s undervalued at its current price.
We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price (full value price), which in this case is $51.70, thus a good entry point into AT&T would be at $46.50 or below.
We expect the stock of AT&T to kick up from current levels in coming weeks and months to levels closer to our target price (full value price), as their stock is price is undervalued. Since AT&T is trading at well below our suggested entry point we rate the stock as a BUY
We therefore believe the stock of AT&T s undervalued at its current price.
We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price (full value price), which in this case is $51.70, thus a good entry point into AT&T would be at $46.50 or below.
We expect the stock of AT&T to kick up from current levels in coming weeks and months to levels closer to our target price (full value price), as their stock is price is undervalued. Since AT&T is trading at well below our suggested entry point we rate the stock as a BUY
Next earnings release
It is expected that AT&T will release their 1st quarter 2022 earnings report in early April 2022
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