Telecom Conglomerate AT&T Q1 Earnings Expected To Get DirecTV Boost
Telecom conglomerate AT&T’s (T) first-quarter EPS is expected to rise 10%, with revenue up 24%, boosted by its acquisition of satellite broadcaster DirecTV last July.
AT&T is slated to release earnings after the market close on Tuesday.
Analysts expect that like Verizon Communications (VZ), which on Thursday reported Q1 revenue below views, AT&T’s results will be affected by fewer upgrades to new mobile phones. That trend improves wireless profit margins but lowers equipment revenue.
Excluding AOL, acquired last June, Verizon said its Q1 revenue fell 1.5%, as wireless revenue fell 1.4% to $22 billion.
“With installment payment plans becoming the industry norm, nearly 70% of AT&T smartphone subscribers are on unsubsidized plans,” said Jim Breen, an analyst at William Blair, in a research report Monday. “Customers are increasingly waiting longer to upgrade their phones.