We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
AT&T (T) Reiterates Guidance for 2021, Unveils 5G Strategy
Read MoreHide Full Article
AT&T Inc. (T - Free Report) recently affirmed its earlier guidance for 2021 and offered key insights about its long-term objectives. The company also unveiled its 5G strategy while shedding some light on its continued business transformation initiatives to create long-term value for shareholders.
AT&T is increasingly focusing on its customer-centric business model to attract and retain customers for a lower churn rate. The company is witnessing healthy momentum in its postpaid wireless business with increased adoption of higher-tier unlimited plans. This, in turn, is expected to result in year-over-year growth in wireless customers with unlimited tariff plans. Notably, from 2016 to 2020, AT&T invested more than $105 billion in the United States to upgrade network infrastructure and acquire spectrum assets for superior wireless coverage. The company’s 5G network currently covers more than 230 million users in 14,000 cities across the country and its 5G+ network is available in 38 cities. While 5G service offers broader coverage over sub-6 spectrum for people on the move, 5G+ offers coverage over mmWave spectrum for dense high-trafficked relatively smaller areas.
The company acquired 80MHz of mid-band spectrum in the C-Band auction for a total consideration of $27.4 billion. While Verizon Communications Inc. (VZ - Free Report) secured 3,511 of the 5,684 licenses up for grabs, AT&T claimed 1,621 licenses to close in the gap with T-Mobile US Inc. (TMUS - Free Report) in relation to mid-band spectrum holding. These airwaves offer significant bandwidth with better propagation characteristics for optimum coverage in both rural and urban areas. AT&T intends to deploy 40MHz of this spectrum by the end of 2021. The company aims to fund this deployment with available cash in hand, commercial paper issued earlier this year and term loan credit agreement. AT&T expects a net debt-to-adjusted EBITDA ratio of about 3.0 in 2021, which is likely to be 2.5 or lower in 2024.
Solid cash flow, along with prudent capital management strategies, is likely to offer the company the requisite financial strength and flexibility to maintain the growth momentum through continued infrastructure investments. Through continuous debt-reduction initiatives driven by monetization of non-core assets and cost cuts, AT&T expects to maintain a dividend payout rate as it aims to reward shareholders with attractive risk-adjusted returns.
AT&T expects more than 3 million customer additions in the fiber optic network in 2021 with solid demand trends for seamless broadband connectivity. As streaming content from HBO Max is increasingly gaining traction, the company expects 120-150 million HBO Max and HBO subscribers worldwide by the end of 2025. AT&T is benefiting from its hybrid distribution model, which focuses on releasing content to theaters through Warner Brothers and directly to consumers through HBO Max. The company is likely to expand HBO Max in 39 international markets in late June and additional 21 markets in the second half of 2021 in order to generate incremental revenues from customer additions.
An integrated fiber expansion strategy is expected to improve the broadband connectivity for both enterprise and consumer markets, while steady 5G deployments are likely to boost end-user experience. AT&T plans to deploy 5G+ service in stadiums, arenas and practice facilities across the country by the end of 2021, along with various company-owned retail stores, to revolutionize the shopping experience. In addition, the company aims to launch 5G+ in seven airports while offering secure 5G facilities to the FirstNet network. AT&T remains focused on business transformation efforts to augment operational efficiency and facilitate optimum utilization of resources to enhance value. The company expects this holistic growth policy to add significant customer value and generate healthy ROI across the business.
The stock has lost 6.3% in the past year against the industry’s growth of 16%.
We remain impressed with the inherent growth potential of this Zacks Rank #3 (Hold) stock. A better-ranked stock in the industry is Cambium Networks Corporation (CMBM - Free Report) , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cambium has a long-term earnings growth expectation of 20%. It delivered a positive earnings surprise of 128%, on average, in the trailing four quarters.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Image: Bigstock
AT&T (T) Reiterates Guidance for 2021, Unveils 5G Strategy
AT&T Inc. (T - Free Report) recently affirmed its earlier guidance for 2021 and offered key insights about its long-term objectives. The company also unveiled its 5G strategy while shedding some light on its continued business transformation initiatives to create long-term value for shareholders.
AT&T is increasingly focusing on its customer-centric business model to attract and retain customers for a lower churn rate. The company is witnessing healthy momentum in its postpaid wireless business with increased adoption of higher-tier unlimited plans. This, in turn, is expected to result in year-over-year growth in wireless customers with unlimited tariff plans. Notably, from 2016 to 2020, AT&T invested more than $105 billion in the United States to upgrade network infrastructure and acquire spectrum assets for superior wireless coverage. The company’s 5G network currently covers more than 230 million users in 14,000 cities across the country and its 5G+ network is available in 38 cities. While 5G service offers broader coverage over sub-6 spectrum for people on the move, 5G+ offers coverage over mmWave spectrum for dense high-trafficked relatively smaller areas.
The company acquired 80MHz of mid-band spectrum in the C-Band auction for a total consideration of $27.4 billion. While Verizon Communications Inc. (VZ - Free Report) secured 3,511 of the 5,684 licenses up for grabs, AT&T claimed 1,621 licenses to close in the gap with T-Mobile US Inc. (TMUS - Free Report) in relation to mid-band spectrum holding. These airwaves offer significant bandwidth with better propagation characteristics for optimum coverage in both rural and urban areas. AT&T intends to deploy 40MHz of this spectrum by the end of 2021. The company aims to fund this deployment with available cash in hand, commercial paper issued earlier this year and term loan credit agreement. AT&T expects a net debt-to-adjusted EBITDA ratio of about 3.0 in 2021, which is likely to be 2.5 or lower in 2024.
Solid cash flow, along with prudent capital management strategies, is likely to offer the company the requisite financial strength and flexibility to maintain the growth momentum through continued infrastructure investments. Through continuous debt-reduction initiatives driven by monetization of non-core assets and cost cuts, AT&T expects to maintain a dividend payout rate as it aims to reward shareholders with attractive risk-adjusted returns.
AT&T expects more than 3 million customer additions in the fiber optic network in 2021 with solid demand trends for seamless broadband connectivity. As streaming content from HBO Max is increasingly gaining traction, the company expects 120-150 million HBO Max and HBO subscribers worldwide by the end of 2025. AT&T is benefiting from its hybrid distribution model, which focuses on releasing content to theaters through Warner Brothers and directly to consumers through HBO Max. The company is likely to expand HBO Max in 39 international markets in late June and additional 21 markets in the second half of 2021 in order to generate incremental revenues from customer additions.
An integrated fiber expansion strategy is expected to improve the broadband connectivity for both enterprise and consumer markets, while steady 5G deployments are likely to boost end-user experience. AT&T plans to deploy 5G+ service in stadiums, arenas and practice facilities across the country by the end of 2021, along with various company-owned retail stores, to revolutionize the shopping experience. In addition, the company aims to launch 5G+ in seven airports while offering secure 5G facilities to the FirstNet network. AT&T remains focused on business transformation efforts to augment operational efficiency and facilitate optimum utilization of resources to enhance value. The company expects this holistic growth policy to add significant customer value and generate healthy ROI across the business.
The stock has lost 6.3% in the past year against the industry’s growth of 16%.
We remain impressed with the inherent growth potential of this Zacks Rank #3 (Hold) stock. A better-ranked stock in the industry is Cambium Networks Corporation (CMBM - Free Report) , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cambium has a long-term earnings growth expectation of 20%. It delivered a positive earnings surprise of 128%, on average, in the trailing four quarters.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Click here for the 4 trades >>