What To Expect From AT&T’s Q2 2019 Results?
AT&T (NYSE:T) is expected to publish its Q2’19 results on July 24. In this analysis, we take a look at some of the trends that have been driving the company’s results in recent quarters.
View our interactive dashboard analysis What To Expect As AT&T Publishes Q2 2019 Results?
How Have AT&T’s Revenues Trended And What’s The Outlook?
- AT&T’s revenues grew by about 18% YoY to $45 billion in Q1 2019, on account of its acquisition of Time Warner.
- However, sales declined QoQ, on account of seasonally lower equipment sales and lower sales from Warner Media.
- How Will An Expanding Postpaid Phone Business Drive AT&T Stock’s Q1 Results?
- Down 50% From 2021, We Think There’s Upside For AT&T Stock
- Will AT&T Stock See Gains Post Q2 Results?
- At $15, AT&T Stock Appears Oversold
- AT&T Stock Held Up In A Tough Market. What Does 2023 Hold?
- What’s Happening With AT&T Stock?
What’s Are The Key Drivers Of AT&T’s Revenues?
Communications
- AT&T’s communications division includes its Mobility, Entertainment, and Business Wireline operations and accounts for over 75% of AT&T’s revenues.
- On a QoQ basis, sales declined due to lower equipment sales in the mobility division and continued subscriber losses from the Pay TV business.
- On a YoY basis, revenues remained almost flat.
Warner Media
- AT&T acquired Time Warner in Q2 2018. The division accounts for close to 20% of AT&T’s total revenues.
- Revenues declined by about 8% QoQ in Q1, driven by lower revenues from Warner Brothers.
Latin America
- The Latin America segment includes AT&T’s Mexican Wireless business and its Latin American Pay TV operations. The segment accounts for less than 4% of total revenues.
- Revenues have been declining steadily, partly due to currency headwinds and a weaker Pay TV business.
How Have Key Subscriber Metrics For The Communications Segment Trended?
- AT&T’s postpaid phone business has seen its subscriber base moderate over the last few years, partly due to feature phone losses.
- AT&T’s prepaid phone business has been gaining traction, driven by its value-focused Cricket brand.
- AT&T’s pay-TV business has been underperforming due to subscriber losses at its DirecTV satellite service.
What Are The Key Drivers Of AT&T’s Expenses & Profitability?
- AT&T’s total operating expenses grew YoY on account of the Time Warner deal, they declined QoQ, partly due to lower equipment-related expenses.
- AT&T’s interest expenses have been trending higher, due to the higher debt associated with its recent acquisitions.
- AT&T’s net income margins have declined from about 12% in Q1’18 to about 9% in Q1’19.
Estimating AT&T’s EPS
AT&T’s EPS stood at $0.56 in Q1’19, marking a sequential decline.