Telecom Stocks: AT&T, Verizon, and T-Mobile's Q3 Performance

The telecommunications sector has witnessed a robust year, with stocks such as T-Mobile, AT&T, and Verizon experiencing significant gains. As we approach the end of 2024, investors are keen to understand if these telecom stocks will maintain their momentum. The Q3 results may provide valuable insights into the future trajectory of these companies.

AT&T, Verizon, and T-Mobile have all reported strong gains in their stock prices this year. T-Mobile has led the pack with a 35% increase, followed by AT&T with a 28% gain, and Verizon with a 16% increase. However, the upcoming Q3 earnings reports could alter the course of these stocks.

Wall Street analysts expect a year-over-year decline in earnings for AT&T, despite higher revenues, when the company reports its Q3 results. The consensus outlook for AT&T's earnings per share (EPS) is $0.59, representing a -7.8% change from the previous year. Revenues are expected to increase by 0.7% to $30.55 billion.

The consensus EPS estimate for AT&T has remained unchanged over the last 30 days, indicating that analysts have not collectively reassessed their initial estimates. However, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP (Expected Surprise Prediction) of -6.18%. This suggests that AT&T may not beat the consensus EPS estimate in its upcoming earnings report.

Verizon, on the other hand, is expected to report a -3.3% change in EPS to $1.18 per share, with revenues projected to increase by 0.9% to $33.63 billion. Verizon's EPS estimate has decreased by 0.4% over the last 30 days, but the Most Accurate Estimate has resulted in an Earnings ESP of 0.39%. This indicates a higher likelihood of Verizon beating the consensus EPS estimate.

In conclusion, the Q3 results for AT&T, Verizon, and T-Mobile will be crucial in determining the future trajectory of these telecom stocks. While AT&T may face challenges in beating the consensus EPS estimate, Verizon appears better positioned to exceed expectations. Investors should closely monitor these earnings reports and management's discussion of business conditions to make informed decisions about their investments in the telecommunications sector.