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 to Tap AI Analytics to Boost Key Metrics: Time to Buy the Stock?
Read MoreHide Full Article
AT&T Inc. (T - Free Report) has inked an agreement with Unsupervised AI to unearth potential opportunities to improve key metrics while empowering its workforce with faster, smarter access to data insights. The deal with this Broomfield, CO-based software firm will enable AT&T to leverage AI (artificial intelligence) to help identify valuable patterns and key insights by analyzing various internal data sources to scale production and improve profitability.
Traversing vast datasets, Unsupervised AI’s state-of-the-art software automates complex data analysis to help answer queries at lightning speed, retain data relationships and force multiply their analytics efforts. This is expected to identify more than $100 million worth of opportunities that could be deployed across the diverse business units of AT&T to augment its ROI (return on investments).
T Strives to Boost Operational Efficiency
To augment operational efficiency and help build a more robust ecosystem of network infrastructure providers and suppliers, AT&T intends to leverage Ericsson (ERIC - Free Report) technology to deploy a commercial-scale open radio access network (Open RAN) across the country. The Open RAN architecture facilitates healthy competition among vendors for the supply of essential components and reduces dependence on a single manufacturer. It is likely to offer more flexibility, lower costs and monetize the network while thwarting security risks by avoiding reliance on non-U.S. vendors such as Huawei.
AT&T aims to deploy Open RAN for 70% of its wireless network traffic across open-capable platforms by late 2026. The company expects to have fully integrated Open RAN sites operating in coordination with Ericsson from 2024, enabling it to move away from closed proprietary interfaces for rapid scaling and management of mixed supplier hardware at each cell site. From 2025, the company intends to scale this Open RAN environment throughout its wireless network in coordination with multiple suppliers to establish itself as the leading player in the industry.
An integrated fiber expansion strategy is expected to improve 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 various stadiums, arenas and practice facilities across the country, along with various company-owned retail stores, to revolutionize the shopping experience. In addition, the company aims to launch 5G+ in several airports while offering secure 5G facilities to the FirstNet network. The acquisition of mid-band spectrum (C-Band) further offers significant bandwidth with better propagation characteristics for optimum coverage in both rural and urban areas.
For a seamless transition among Wi-Fi, Long-Term Evolution and 5G services, it intends to deploy a standards-based nationwide mobile 5G network. Its 5G service entails utilization of millimeter wave spectrum for deployment in dense pockets, while in suburban and rural areas, it intends to deploy 5G on mid- and low-band spectrum holdings.
T Weighed Down by Margin Pressure
Despite solid wireless traction, AT&T is facing a steady decline in legacy services. The company’s wireline division is struggling with persistent losses in access lines as a result of competitive pressure from voice-over-Internet protocol service providers and aggressive triple-play (voice, data, video) offerings by the cable companies. High-speed Internet revenues are contracting due to the legacy Digital Subscriber Line decline, simplified pricing and bundle discounts. As AT&T tries to woo customers with healthy discounts, freebies and cash credits, margin pressures tend to escalate, affecting its growth potential to some extent.
AT&T has also offered a muted outlook for 2024 amid a challenging macroeconomic environment. For 2024, management expects adjusted earnings to be between $2.15 and $2.25 per share as high investments for infrastructure upgrades weigh on margins.
Image Source: Zacks Investment Research
Estimate Revision Trend of T
Earnings estimates for AT&T for 2024 have moved down 11.2% to $2.22 over the past year, while the same for 2025 has declined 6% to $2.34. The negative estimate revision depicts bearish sentiments for the stock.
Image Source: Zacks Investment Research
Price Performance of T
The stock has gained 43.4% over the past year compared with the industry’s rally of 38.8%, outperforming peers like Verizon Communications Inc. (VZ - Free Report) but lagging T-Mobile US, Inc. (TMUS - Free Report) .
One-Year Price Performance
Image Source: Zacks Investment Research
End Note
By investing steadily in infrastructure and pioneering new technologies, AT&T is well-positioned to bridge the digital divide and enhance the connectivity landscape nationwide. This is likely to translate into solid postpaid subscriber growth and higher average revenue per user in the Mobility Service business.
However, a saturated wireless market and price wars owing to competitive pressure have eroded its profitability. The downtrend in estimate revisions further portrays skepticism about the stock’s growth potential. With a Zacks Rank #3 (Hold), AT&T appears to be treading in the middle of the road, and investors could be better off if they trade with caution. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
AT&T to Tap AI Analytics to Boost Key Metrics: Time to Buy the Stock?
AT&T Inc. (T - Free Report) has inked an agreement with Unsupervised AI to unearth potential opportunities to improve key metrics while empowering its workforce with faster, smarter access to data insights. The deal with this Broomfield, CO-based software firm will enable AT&T to leverage AI (artificial intelligence) to help identify valuable patterns and key insights by analyzing various internal data sources to scale production and improve profitability.
Traversing vast datasets, Unsupervised AI’s state-of-the-art software automates complex data analysis to help answer queries at lightning speed, retain data relationships and force multiply their analytics efforts. This is expected to identify more than $100 million worth of opportunities that could be deployed across the diverse business units of AT&T to augment its ROI (return on investments).
T Strives to Boost Operational Efficiency
To augment operational efficiency and help build a more robust ecosystem of network infrastructure providers and suppliers, AT&T intends to leverage Ericsson (ERIC - Free Report) technology to deploy a commercial-scale open radio access network (Open RAN) across the country. The Open RAN architecture facilitates healthy competition among vendors for the supply of essential components and reduces dependence on a single manufacturer. It is likely to offer more flexibility, lower costs and monetize the network while thwarting security risks by avoiding reliance on non-U.S. vendors such as Huawei.
AT&T aims to deploy Open RAN for 70% of its wireless network traffic across open-capable platforms by late 2026. The company expects to have fully integrated Open RAN sites operating in coordination with Ericsson from 2024, enabling it to move away from closed proprietary interfaces for rapid scaling and management of mixed supplier hardware at each cell site. From 2025, the company intends to scale this Open RAN environment throughout its wireless network in coordination with multiple suppliers to establish itself as the leading player in the industry.
Fiber Densification, 5G Deployment: T’s Core Focus
An integrated fiber expansion strategy is expected to improve 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 various stadiums, arenas and practice facilities across the country, along with various company-owned retail stores, to revolutionize the shopping experience. In addition, the company aims to launch 5G+ in several airports while offering secure 5G facilities to the FirstNet network. The acquisition of mid-band spectrum (C-Band) further offers significant bandwidth with better propagation characteristics for optimum coverage in both rural and urban areas.
For a seamless transition among Wi-Fi, Long-Term Evolution and 5G services, it intends to deploy a standards-based nationwide mobile 5G network. Its 5G service entails utilization of millimeter wave spectrum for deployment in dense pockets, while in suburban and rural areas, it intends to deploy 5G on mid- and low-band spectrum holdings.
T Weighed Down by Margin Pressure
Despite solid wireless traction, AT&T is facing a steady decline in legacy services. The company’s wireline division is struggling with persistent losses in access lines as a result of competitive pressure from voice-over-Internet protocol service providers and aggressive triple-play (voice, data, video) offerings by the cable companies. High-speed Internet revenues are contracting due to the legacy Digital Subscriber Line decline, simplified pricing and bundle discounts. As AT&T tries to woo customers with healthy discounts, freebies and cash credits, margin pressures tend to escalate, affecting its growth potential to some extent.
AT&T has also offered a muted outlook for 2024 amid a challenging macroeconomic environment. For 2024, management expects adjusted earnings to be between $2.15 and $2.25 per share as high investments for infrastructure upgrades weigh on margins.
Image Source: Zacks Investment Research
Estimate Revision Trend of T
Earnings estimates for AT&T for 2024 have moved down 11.2% to $2.22 over the past year, while the same for 2025 has declined 6% to $2.34. The negative estimate revision depicts bearish sentiments for the stock.
Image Source: Zacks Investment Research
Price Performance of T
The stock has gained 43.4% over the past year compared with the industry’s rally of 38.8%, outperforming peers like Verizon Communications Inc. (VZ - Free Report) but lagging T-Mobile US, Inc. (TMUS - Free Report) .
One-Year Price Performance
Image Source: Zacks Investment Research
End Note
By investing steadily in infrastructure and pioneering new technologies, AT&T is well-positioned to bridge the digital divide and enhance the connectivity landscape nationwide. This is likely to translate into solid postpaid subscriber growth and higher average revenue per user in the Mobility Service business.
However, a saturated wireless market and price wars owing to competitive pressure have eroded its profitability. The downtrend in estimate revisions further portrays skepticism about the stock’s growth potential. With a Zacks Rank #3 (Hold), AT&T appears to be treading in the middle of the road, and investors could be better off if they trade with caution. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.