AT&T Inc. (T), a Dallas-based giant in the telecommunications world, has been shaping connectivity since its incorporation in 1983. With a market cap of $157.1 billion, AT&T remains at the forefront of providing internet services and broadband access. Known for its broad spectrum of offerings, including Cricket, AT&T Fiber, and AT&T Business, it is a key player in keeping people connected - whether through smartphone plans or prepaid options. The company is set to release its Q3 2024 earnings before the market opens on Wednesday, Oct. 23.

Ahead of the event, analysts expect AT&T to report a profit of $0.59 per share, down 7.8% from $0.64 per share reported in the year-ago quarter. The company has surpassed Wall Street’s EPS estimates in two of the previous four quarters while missing on two other occasions. Its adjusted EPS for the last reported quarter declined 9.5% year over year to $0.57, missing the consensus estimates by 1.7%.

For fiscal 2024, analysts expect AT&T to report an EPS of $2.22, down 7.9% from $2.41 in fiscal 2023. However, fiscal 2025 EPS is projected to grow 5.4% annually to $2.34.

T stock has surged 30.6% on a YTD basis, outpacing the S&P 500 Index’s ($SPX) 20.6% returns and the Communication Services Select Sector SPDR ETF Fund’s (XLC) 25.1% gains during the same time frame.

AT&T is quietly making waves, outpacing the broader market thanks to its wireless and fiber strength. Fueled by sharp subscriber growth, the company’s strategic push into 5G and fiber expansion has boosted its competitive edge.

In fact, on July 24, AT&T surged over 5% despite missing Q2 revenue and earnings expectations. It added 419,000 new wireless subscribers, surpassing expectations. Plus, a 9.5% bump in free cash flow, now at $4.6 billion, has boosted investor confidence.

Moreover, after shedding its media ventures, DIRECTV, AT&T refocused on what it does best - telecom. The pivot paid off, driving the company’s impressive rally.

The consensus opinion on T stock is moderately bullish, with a “Moderate Buy” rating overall. That’s based on 25 analysts covering the stock, with 12 advising a “Strong Buy” rating, one suggesting a “Moderate Buy,” 11 giving it a “Hold” rating, and the remaining one having a “Strong Sell” rating. 

The mean price target of $22.46 suggests an upside potential of 2.5% from the current price levels of T stock. 

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On the date of publication, Sristi Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.