Will T's Q1 2025 earnings beat forecasts?
3/28/2025 02:31pm
**AT&T's Q1 2025 earnings are likely to beat forecasts**, considering the company's guidance and recent performance indicators. Here's a detailed analysis supporting this conclusion:
1. **Earnings Per Share (EPS) Guidance**: AT&T has provided EPS guidance of $0.480- for Q1 2025, compared to the consensus estimate of $0.530. While the company's guidance is slightly below the consensus estimate, it is important to note that the company's EPS for the previous quarter exceeded expectations, with an EPS of $0.54, compared to an estimated $0.48.
2. **Revenue Guidance**: AT&T has not provided specific revenue guidance for Q1 2025. However, the company's estimated revenue for the quarter is $30.55 billion. Considering the company's historical performance and the fact that it has exceeded revenue estimates in the past, it is reasonable to assume that AT&T's revenue for Q1 2025 could be higher than the estimated figure.
3. **Recent Performance**: AT&T's stock has recently reached a 52-week high, hitting $27.98, reflecting positive momentum and investor confidence. The company's strategic moves, such as the potential acquisition of Lumen Technologies' consumer fiber operations, are expected to further enhance its market position and expand its fiber network.
4. **Analyst Ratings and Price Targets**: Analysts have maintained or upgraded their ratings for AT&T, with a consensus rating of "Moderate Buy" and a consensus target price of $26.74. Goldman Sachs has reaffirmed a Buy rating on AT&T, with a stable price target of $29.00, indicating confidence in the company's potential for growth.
5. **Dividend Yield and Financial Health**: AT&T has a high dividend yield of 4.07%, and its dividend payout ratio is 74.50%, which suggests that the company is committed to returning value to shareholders. The company's financial health, with a quick ratio of 0.62 and a current ratio of 0.66, indicates its ability to meet short-term obligations.
In conclusion, while there are no definitive guarantees that AT&T's Q1 2025 earnings will exceed forecasts, the company's EPS guidance, historical performance, strategic initiatives, and analyst ratings suggest that the company is well-positioned to beat expectations.