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Will Lower Latin America Revenues Hurt AT&T (T) Q3 Earnings?
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AT&T Inc. (T - Free Report) is scheduled to report third-quarter 2022 results, before the opening bell, on Oct 20. In the quarter, the Latin America segment is likely to have recorded year-over-year lower revenues owing to a challenging macroeconomic environment.
Factors at Play
The Latin America segment comprises wireless services and equipment in Mexico.
In the third quarter, AT&T continued to expand its 5G network infrastructure to offer seamless data connectivity and high-speed low latency communication network facilities. The company continued to offer Unlimited Plans with multiple lines to mix and match. With AT&T Unlimited Premium or AT&T Unlimited Elite plan, users can enjoy unlimited talk, text and data at no extra cost when traveling in or between 19 Latin American countries. Such initiatives are likely to get reflected in the upcoming results.
During the to-be-reported quarter, AT&T inked an agreement with Nokia to deploy an industrial-grade LTE private network in a maritime terminal in Mexico. Powered by AT&T Mexico, the network is likely to provide seamless broadband connectivity with lower latency and greater network predictability in piers and yards, securely connecting hundreds of workers, sensors, equipment and vehicles across 11.5 hectares. This is likely to have translated into higher revenues for the company.
However, adverse foreign currency translations and high operating costs for 5G deployments are likely to have led to soft margins in the quarter. Continuous infrastructure investments for 5G deployments are likely to have weighed on the margins. A challenging macroeconomic environment is also expected to have hurt the top line.
Overall Expectations
The Zacks Consensus Estimate for revenues from the Latin America segment is pegged at $775 million, indicating a decline from $1,480 million reported in the year-ago quarter. The consensus mark for EBITDA from the segment stands at $72 million, suggesting a fall from $123 million.
The Zacks Consensus Estimate for total revenues of the company stands at $29,816 million, indicating a decline from $39,922 million reported in the prior-year quarter. The consensus mark for earnings is currently pegged at 61 cents per share. It had reported earnings of 87 cents per share in the year-earlier quarter.
Earnings Whispers
Our proven model predicts an earnings beat for AT&T for the third quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is perfectly the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +2.70%, with the former pegged at 65 cents and the latter at 60 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some other companies you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this season:
The Earnings ESP for T-Mobile US, Inc. (TMUS - Free Report) is +11.60% and it carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Oct 27.
The Earnings ESP for Apple Inc. (AAPL - Free Report) is +0.86% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Oct 27.
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Will Lower Latin America Revenues Hurt AT&T (T) Q3 Earnings?
AT&T Inc. (T - Free Report) is scheduled to report third-quarter 2022 results, before the opening bell, on Oct 20. In the quarter, the Latin America segment is likely to have recorded year-over-year lower revenues owing to a challenging macroeconomic environment.
Factors at Play
The Latin America segment comprises wireless services and equipment in Mexico.
In the third quarter, AT&T continued to expand its 5G network infrastructure to offer seamless data connectivity and high-speed low latency communication network facilities. The company continued to offer Unlimited Plans with multiple lines to mix and match. With AT&T Unlimited Premium or AT&T Unlimited Elite plan, users can enjoy unlimited talk, text and data at no extra cost when traveling in or between 19 Latin American countries. Such initiatives are likely to get reflected in the upcoming results.
During the to-be-reported quarter, AT&T inked an agreement with Nokia to deploy an industrial-grade LTE private network in a maritime terminal in Mexico. Powered by AT&T Mexico, the network is likely to provide seamless broadband connectivity with lower latency and greater network predictability in piers and yards, securely connecting hundreds of workers, sensors, equipment and vehicles across 11.5 hectares. This is likely to have translated into higher revenues for the company.
However, adverse foreign currency translations and high operating costs for 5G deployments are likely to have led to soft margins in the quarter. Continuous infrastructure investments for 5G deployments are likely to have weighed on the margins. A challenging macroeconomic environment is also expected to have hurt the top line.
Overall Expectations
The Zacks Consensus Estimate for revenues from the Latin America segment is pegged at $775 million, indicating a decline from $1,480 million reported in the year-ago quarter. The consensus mark for EBITDA from the segment stands at $72 million, suggesting a fall from $123 million.
The Zacks Consensus Estimate for total revenues of the company stands at $29,816 million, indicating a decline from $39,922 million reported in the prior-year quarter. The consensus mark for earnings is currently pegged at 61 cents per share. It had reported earnings of 87 cents per share in the year-earlier quarter.
Earnings Whispers
Our proven model predicts an earnings beat for AT&T for the third quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is perfectly the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +2.70%, with the former pegged at 65 cents and the latter at 60 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
AT&T Inc. Price and EPS Surprise
AT&T Inc. price-eps-surprise | AT&T Inc. Quote
Zacks Rank: AT&T has a Zacks Rank #3.
Other Stocks to Consider
Here are some other companies you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this season:
Verizon Communications Inc. (VZ - Free Report) is set to release quarterly numbers on Oct 21. It has an Earnings ESP of +0.73% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Earnings ESP for T-Mobile US, Inc. (TMUS - Free Report) is +11.60% and it carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Oct 27.
The Earnings ESP for Apple Inc. (AAPL - Free Report) is +0.86% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Oct 27.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.