T - Embedded Expectations Analysis - 2020 08 26
AT&T Inc. (T:USA) is currently trading below corporate averages relative to UAFRS-based (Uniform) earnings, with a 17.3x Uniform P/E. At these levels, the market is pricing in somewhat bearish expectations for the firm, and management may be concerned about revenue, margins, and the potential of contentSpecifically, management may have concerns about the challenging environment in Q3, and continued declines in revenue related to delays in theatrical releases, and FX headwinds in Latin America. In addition, they may lack confidence in their ability to fully utilize the benefits from the CARES Act and sustain their EBITDA growth. Furthermore, they may be overstating the pace of progress of the HBO Max launch and their ability to create a theatrical experience for watching content. Moreover, they may lack confidence in their ability to effectively restructure their benefit plans, streamline functions to support their customers, and capitalize on the wireless trend
AT&T is a holding company. Through its subsidiaries, the company is a provider of telecommunications, media and technology services. The company's Communications segment provides wireless and wireline telecom, video and broadband services. The company's WarnerMedia segment includes media and entertainment businesses that principally develop, produce and distribute feature films, television content, and other content globally; and operate digital media properties. The company's Latin America segment provides entertainment services in Latin America and wireless services in Mexico. The company's XANDR segment relies on using data from its customer relationships, to develop digital and video advertising that is relevant to consumers.
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