Saturday, October 24, 2015

AT&T: Still Cheap Despite The Confusion

  • AT&T easily surpassed Q3 2015 EPS estimates despite massive confusion regarding the revenue numbers.
  • The market continues to not appropriately value the stock based on synergy benefits that will kick in over the next year, whether or not the company achieves the ultimate $2.5.
  • The stock is cheap while paying a 5.6% dividend for investors to wait on synergy benefits.



The Q3 results for AT&T (NYSE:T) were a mass of confusion with the inclusion of DirecTV for only a partial period. The company came out early and pointed out that analysts were miscounting DirecTV revenue while previously changing how commercial satellite subscribers were counted. At the same time, the shift in video and broadband revenues from legacy AT&T to a new segment mingled with DirecTV revenues and expenses made quarterly comparisons difficult.

Read the full article on Seeking Alpha.


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