T - Embedded Expectations Analysis - 2021 05 13
AT&T Inc. (T:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) earnings, with a 15.0x Uniform P/E. At these levels, the market is pricing in bearish expectations for the firm, and management may have concerns about HBO Max subscriber growth, C-band spectrum benefits, and WarnerMedia cost reductionsSpecifically, management may lack confidence in their ability to sustain cost-saving contributions from WarnerMedia, monetize their noncore assets, and efficiently improve tower infrastructure for 2022. In addition, they may have concerns about the benefits of C-band spectrum on their 2022 fiber build, the price sensitivity of HBO Max customers, and international roaming business headwinds. Furthermore, they may lack confidence in their ability to maintain HBO Max's strong subscriber gains and achieve its expected churn rates
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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