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SpaceX is reportedly in talks to buy Boost Mobile from EchoStar. The goal is to build a hybrid network that uses both satellites and traditional cell towers to provide phone service. If the deal happens, it would create a new, well-funded competitor to the three big carriers that currently control the U.S. market.
For a long-term owner, this is a development to watch because it could eventually pressure the prices AT&T can charge. While building a national wireless network is incredibly expensive and takes years, SpaceX already has a massive satellite network in place. A fourth major player with that kind of technology could make it harder for AT&T to keep growing its mobile profit margins.
Source: TechCrunch
AT&T is deepening its work with Smart Meter to provide cellular connectivity for medical devices used outside of hospitals. By using specialized SIM cards that work across different regions, healthcare providers can more reliably track patients with chronic conditions from their homes. While this is a small part of the company's overall business, it shows how AT&T is finding new ways to sell its 5G network beyond just phones and home internet. These kinds of specialized business contracts provide steady, long-term revenue that is less likely to be canceled than a typical consumer phone plan.
Source: Business Wire
Barclays lowered its price target from $24 to $21 but kept an equal weight rating, which is their way of saying the stock is fairly valued. This change brings their target in line with where the stock is currently trading. The average target among all analysts who follow the company is about $26. This suggests that while some firms are cautious about the company's heavy debt load, the broader group still sees room for the stock to rise from its current level.
Source: Barclays
After AT&T reported its October results, we updated our fair value and raised our expectations for fiber subscriber growth to 442,000 per quarter. We added the threat from satellite-to-cell technology and the impact of the EchoStar and Lumen acquisitions to what we track. We have reset our forecast for when the company will reach its debt reduction goals to 2029 and raised our assumption for customer turnover in the wireless business.
AT&T earned $0.65 per share this quarter, topping the $0.60 analysts expected. Revenue hit $32.3 billion, driven by strong demand for fiber internet and 5G wireless plans. The company added more than 1 million new high-speed connections for the second quarter in a row, which shows its focus on core connectivity is winning over customers.
Management now expects to earn about $2.40 per share for the full year, up from its previous target. It also plans to spend slightly less on things like cell towers and fiber lines over the next two years. For a company carrying a lot of debt, spending less while growing faster is a good sign that it can continue paying down its loans while supporting its dividend.
See the full quarter, and how our tracked metrics did
Source: 8-K filing
Management has delivered eight straight quarters of steady beats, showing they set a predictable bar and clear it with surgical precision.
| Expectation | |
|---|---|
| EPS | $0.53 |
| Revenue | $34.70B |