Erste Group Bank Comments on AT&T's FY2027 Earnings (NYSE:T)

Key Points

• Erste Group Bank slightly lowered its FY2027 earnings estimate for AT&T to $2.54 per share from $2.55, which remains above the current consensus estimate of $2.31.
• AT&T’s most recent quarter beat expectations, posting $0.57 EPS on $31.51 billion in revenue, and the company reaffirmed FY2026 guidance of 2.25 to 2.35 EPS.
• Despite some positive developments, including a new rural coverage joint venture and a steady dividend yield of 4.6%, the stock is still trading below key moving averages, reflecting investor caution about growth and leverage.

AT&T Inc. (NYSE:T - Free Report) - Erste Group Bank cut their FY2027 earnings estimates for AT&T in a research report issued on Tuesday, May 12th. Erste Group Bank analyst H. Engel now forecasts that the technology company will post earnings of $2.54 per share for the year, down from their prior forecast of $2.55. The consensus estimate for AT&T's current full-year earnings is $2.31 per share.

A number of other analysts have also recently weighed in on the company. TD Cowen reaffirmed a "hold" rating on shares of AT&T in a research report on Thursday, January 29th. Morgan Stanley started coverage on shares of AT&T in a research note on Thursday, April 16th. They issued an "overweight" rating and a $30.00 price objective for the company. UBS Group reissued a "buy" rating on shares of AT&T in a research report on Thursday, January 29th. BNP Paribas Exane cut their price objective on AT&T from $28.00 to $26.00 and set a "neutral" rating for the company in a research report on Thursday, April 23rd. Finally, Citigroup upped their target price on shares of AT&T from $29.00 to $31.50 and gave the company a "buy" rating in a research note on Monday, March 23rd. One research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and seven have issued a Hold rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $30.55.

AT&T Price Performance

Shares of NYSE:T opened at $24.05 on Monday. AT&T has a fifty-two week low of $22.95 and a fifty-two week high of $29.79. The business has a 50-day moving average of $26.95 and a two-hundred day moving average of $26.01. The stock has a market capitalization of $167.07 billion, a P/E ratio of 8.07, a P/E/G ratio of 0.88 and a beta of 0.23. The company has a debt-to-equity ratio of 1.05, a current ratio of 0.92 and a quick ratio of 0.87.

AT&T (NYSE:T - Get Free Report) last posted its earnings results on Wednesday, April 22nd. The technology company reported $0.57 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.55 by $0.02. The firm had revenue of $31.51 billion during the quarter, compared to analysts' expectations of $31.29 billion. AT&T had a net margin of 16.94% and a return on equity of 12.49%. The company's revenue was up 2.9% compared to the same quarter last year. During the same period in the previous year, the company earned $0.51 earnings per share. AT&T has set its FY 2026 guidance at 2.250-2.350 EPS.

Hedge Funds Weigh In On AT&T

A number of hedge funds have recently modified their holdings of the stock. Tsfg LLC raised its holdings in shares of AT&T by 3.6% in the 4th quarter. Tsfg LLC now owns 10,656 shares of the technology company's stock worth $265,000 after buying an additional 366 shares in the last quarter. Lifestyle Asset Management Inc. increased its position in shares of AT&T by 3.6% during the 4th quarter. Lifestyle Asset Management Inc. now owns 10,511 shares of the technology company's stock worth $261,000 after purchasing an additional 368 shares in the last quarter. Hillsdale Investment Management Inc. increased its position in shares of AT&T by 1.2% during the 4th quarter. Hillsdale Investment Management Inc. now owns 31,970 shares of the technology company's stock worth $794,000 after purchasing an additional 370 shares in the last quarter. Bruce G. Allen Investments LLC increased its position in shares of AT&T by 1.7% during the 4th quarter. Bruce G. Allen Investments LLC now owns 22,398 shares of the technology company's stock worth $556,000 after purchasing an additional 374 shares in the last quarter. Finally, Rockline Wealth Management LLC increased its position in shares of AT&T by 3.8% during the 4th quarter. Rockline Wealth Management LLC now owns 10,445 shares of the technology company's stock worth $259,000 after purchasing an additional 378 shares in the last quarter. 57.10% of the stock is owned by institutional investors and hedge funds.

AT&T Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, May 1st. Stockholders of record on Friday, April 10th were issued a $0.2775 dividend. The ex-dividend date of this dividend was Friday, April 10th. This represents a $1.11 dividend on an annualized basis and a dividend yield of 4.6%. AT&T's dividend payout ratio is presently 37.25%.

Key Headlines Impacting AT&T

Here are the key news stories impacting AT&T this week:

• Positive Sentiment: AT&T joined Verizon and T-Mobile in a proposed joint venture to expand coverage in rural and hard-to-reach areas, which could improve service quality and strengthen the carriers’ competitive positioning over time. US wireless carriers to launch joint venture to address rural 'dead zones'
• Positive Sentiment: Investors are also digesting AT&T’s shareholder/analyst meeting results, including the re-election of all 10 board nominees, which signals governance stability. AT&T Announces Preliminary Results of 2026 Annual Meeting
• Neutral Sentiment: Several articles compared AT&T with Verizon, T-Mobile, and even AST SpaceMobile, reflecting ongoing investor debate about which connectivity strategy will win as the industry shifts toward fiber and satellite-enabled service. AT&T vs AST SpaceMobile: Which Connectivity Stock Should You Bet On?
• Neutral Sentiment: AT&T’s recent shareholder/analyst call transcript has drawn attention, but no major new surprise from the transcript appears to be driving the move on its own. AT&T Inc. (T) Shareholder/Analyst Call Transcript
• Negative Sentiment: Despite the strategic headlines, AT&T remains well below its recent moving averages, suggesting investors are still cautious about growth, leverage, and execution risk.

About AT&T

AT&T Inc is a global telecommunications company that provides a broad range of communications and digital entertainment services. Its core activities include consumer and business wireless services, broadband and fiber internet, and network infrastructure. The company operates branded wireless services through AT&T Mobility and deploys fixed-line and fiber networks to deliver high-speed internet and related home services.

AT&T's product and service portfolio spans mobile voice and data plans, smartphones and device sales, home internet (including fiber-to-the-home where available), and managed connectivity solutions for enterprise customers.

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