T - Embedded Expectations Analysis - 2020 11 20
AT&T Inc. (T:USA) is currently trading below corporate averages relative to UAFRS-based (Uniform) earnings, with a 16.9x Uniform P/E. At these levels, the market is pricing in bearish expectations for the firm, and management may be concerned about subscriber growth, theatrical business disruptions, and earnings weaknessSpecifically, management may lack confidence in their ability to sustain subscriber growth, maintain postpaid churn reductions, and retain customers. Moreover, they may have concerns about the coronavirus' impact on their EPS, disruptions to the theatrical business, and HBO Max's potential internationally. Furthermore, management may lack confidence in their ability to generate growth aside from fiber and mitigate EBITDA and adjusted operating income declines. Also, they may have concerns about the strength of the private network business, and their ability to broaden subscription and advertising-based offerings. Finally, they may lack confidence in their ability to make fixed and wireless connections perform similarly
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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