T-Mobile US reported first quarter earnings that surpassed expectations. The wireless solutions company also raised its forecast for net additions over the full year. The company’s diluted earnings for the three months ending in March fell -23% from the year-ago quarter to 57 cents per share, but well ahead of the Street consensus forecast of 33 cents per share. Revenues rose +1.8% to $20.12...

Verizon Communications posted first quarter earnings that beat expectations. However, the telecom company lowered its full-year forecast for wireless revenues and profit growth. The company’s adjusted non-GAAP earnings for the three months ending in March grew +3% from the year-ago quarter to $1.35 per share, largely in-line with analysts’ expectations. Revenues rose +2.1% from last year to...

Comcast posted its fourth quarter earnings that surpassed analysts’ expectations, even as it missed estimates on high-speed internet additions. The telecom giant’s adjusted earnings came in at 77 cents, topping the 73 cents expected by analysts polled by Refinitiv. Revenue of $30.34 billion also exceeded the $29.61 billion estimated. The company’s net additions of high-speed internet...

AT&T shares fell to the lowest level in more than a decade, amid the company’s shift in focus from media assets to telecoms and lower payout ratios ahead of its third quarter earnings. AT&T has sold key media assets, including DirecTV, and planned the $43 billion merger of its media division with Discovery. It is focusing on becoming a purely telecoms group. The company announced this spring...

The telecom giant also  reported a record-high figure for new broadband subscribers for the quarter.

The company’s adjusted earnings for the quarter came in at 84 cents, compared to the  67 cents expected by analysts polled by Refinitiv.

Revenue of $28.55 billion also beat the  $27.18 billion expected by analysts per the Refinitiv survey.

Comcast garnered 354,000 net new high-speed internet customers, vs. 270,000 net adds expected in a StreetAccount survey.The net adds were its highest ever for a second-quarter performance, according to the company.

Revenue from Comcast’s cable revenue business rose +10.9% year-over-year to $16 billion.

Media business increased +25.7% to $5.1 billion.

Globalstar  shares climbed Monday,  following B. Riley’s  coverage of the mobile satellite services company.

B.B. Riley analyst Mike Crawford mentioned that the company and its sponsors, “after years of development, support, and patience, are at long last starting to realize a return on satellite system and spectrum assets.”

That, according to Crawford, makes 2021 an “excellent” time to buy the company’s shares before the market incorporates this change.

Hodulik also hiked the price target to $35 from $32.

According to the analyst, AT&T’s decision to  spin-off  its streaming business with Discovery Communications could simplify the structure for AT&T. “We see a favorable risk-reward at the current valuation given a more simplified set of connectivity-based assets, lower dividend payout, better visibility into EBITDA growth and lower leverage,” Hodulik said.

Hodulik said that a goal of free cash flow of $20 billion is achievable by 2023.The deal structure could lead to $7 to $8 per share in a one-time tax-free payment via shares of DiscoveryWarner, which represents four to five years of lump-sum dividend payment, Hodulik said.

 

The remaining AT&T assets will intend to give shareholders a dividend payout ratio of between 40% and 43%, based on expected free cash flow of around $20 billion.

AT&T Inc. agreed to spin off its media operations in a deal with Discovery Inc. that will create a new company, merging assets such as CNN and HBO with HGTV and the Food Network.The transaction values the combined entity at about $130 billion including debt, based on WarnerMedia’s estimated enterprise value of more than $90 billion.

As part of the 'Reverse Morris Trust' agreement structure, AT&T shareholders will own 71% of the combined entity, which will likely generate $52 billion in 2023 revenues and a combined subscriber base of nearly 150 million.

 

AT&T is planning to spin off its media business and merge it with Discovery Inc. , according to people familiar with the matter, Bloomberg reported.

A deal could be announced as soon as this week, according to the people, who asked not to be identified (Bloomberg report).The merger could potentially be a competitor to entertainment giants Netflix Inc. and Walt Disney Co. 

AT&T acquired some of the biggest brands in entertainment through its acquisition of Time Warner Inc., which was completed in 2018.

Discovery meanwhile is available in 220 countries and territories, and owns brands like Food Network Kitchen, MotorTrend OnDemand, Group Nine Media, Discovery Channel, Travel Channel, MotorTrend, Science Channel and the Oprah Winfrey Network.

 

AT&T Inc.  reported third quarter revenues that beat analysts’ expecttions, on strong additions to its media and wireless networks.   The telecom & media giant’s adjusted earnings for the three months ending in September came in at 76 cents per share, quite in-line with Street forecasts . The company estimated a -21 cents per share earnings hit linked to the coronavirus pandemic.  Revenues fell -5.2%year-over-year  to $42.3 billion, but surpassed analysts' expectations of $41.6 billion. According to AT&T, subscribers to its HBO Max streaming service hit 38 million in the U.S. last quarter, pushing  it ahead of its 2020 target.

The price target implies downside from the stock's current price. The analysts anticipate challenges for AT&T. Analysts’ revenue and adj.For AT&T’s Warner Media operations, analysts expect the combination of return to sports and added expense associated with HBO Max to affect bottom line. In the Entertainment segment, cord-cutting and programming costs are pressuring profitability. Analysts also noted, “We are lowering our Postpaid phone-only ARPU by $0.27 to $54.88.

Telecommunications giant AT&T  is reportedly considering selling its Warner Bros. gaming segment (Warner Bros. Interactive Entertainment, or WB Games  )in a $4 billion deal. According to CNBC, AT&T wants to reduce its $165 billion debt.In 26 of 48 cases where T's MACD histogram became negative, the price fell further within the following month.

Plus, the tlecom giant is sanguine about  achieving its 2020 and long-term guidance. At the Morgan Stanley’s Technology, Media and Telecom Conference on Tuesday, AT&T CEO  and Warner Media CEO John Stankey said the company is planning to have nationwide 5G coverage by the end of the second quarter. The company projects wireless service revenue to grow by more than 2% in 2020.Stankey indicated that 5G combined with HBO Max content will continue to be the main driver of revenue growth and profitability. By the end of 2022, AT&T intends to use 50%-70% of free cash flow after dividends to retire about 70% of the shares it issued to fund the acquisition of Time Warner.

AT&T Inc. reported fourth quarter earnings that surpassed expectations.  The telecom conglomerate’s adjusted earnings for the three months ending in December came in at 89 cents per share, beating the 87 cents expected by analysts.  Total revenue declined -2.4% to $46.8 billion, slightly below analysts' estimates of a $47 billion. Looking ahead, AT&T projects adjusted earnings to grow to between $4.50 to $4.80 per share by 2022, along with revenue growth every year.

Comcast recently unveiled its streaming service Peacock, due to launch in April 2020. Peacock has three tiers .A free tier, with ads and with a more limited range of content;  a $4.99 per month premium, ad-supported tier with the full range of Peacock content;  and a $9.99 per month  ad-free premium tier. The streaming service will be available on Comcast’s Xfinity X1 and Flex video platforms on April 15. For Peacock, Comcast will use its proprietary assets, and get some content from third-party studios as well. Matt Strauss, Comcast’s chair of Peacock and NBCUniversal digital enterprises, indicated that Peacock will allow streamers to easily access a mix of television shows, movies, sports and news coverage.

T-Mobile U.S. (Nasdaq: TMUS) has been in the news a lot lately.Analysts expect earnings for 2019 as a whole to increase by 28%. Sales have grown as well, but not nearly as much as earnings.

On Monday, AT&T reported adjusted third-quarter earnings of 94 cents per share, which surpassed analysts’ expectation of 93 cents. The telecom behemoth’s quarterly sales of $44.588 billion, however, missed the analyst consensus estimate of $45 billion.The figure is also - 2.52% lower compared to the year-ago quarter’s $45.739 billion. CEO Randall Stephenson  emphasized that “strategic investments” that the company has made over the last several years have helped them meet growing demand for content and connectivity.

Verizon Communications reported second quarter earnings that topped analysts’ expectations, while raising its outlook for the full-year. The telecommunications giant’s earnings for the three months ending in June increased +2.5% year-over-year to $1.23 per share, which is 3 cents ahead of the Street consensus estimate. Verizon added a net 245,000 telephone subscribers over the quarter, beating the 163,000 estimated (on consensus) by analysts polled by FactSet. Total revenue of $32.1 billion, however, and fell slightly below analysts' forecasts of $32.42 billion.  For the full-year 2019, Verizon is expecting a low single-digit percentage growth rate for adjusted earnings, compared to its prior forecast of flat growth.

President Donald Trump on Monday called for a boycott of AT&T to force “big changes” at subsidiary CNN, which Trump often accuses of biased and negative coverage of his administration. “I believe that if people stoped using or subscribing to @ATT, they would be forced to make big changes at @CNN, which is dying in the ratings anyway.It is so unfair with such bad, Fake News!” the president tweeted from the U.K., just as he began a state visit, misspelling “stopped.”

Presently, the health innovation segment at Comcast is working on an in-home device to monitor people’s health, especially at-risk people like seniors and the ones with disabilities, and plans to start pilot-testing later this year.The pricing and roll-out time is yet to be finalized. The company has been working on the device for more than a year now and under the guidance of the new senior vice president and health manager, it is building a strategy and a team to bring the new health hardware to market. The said device will be able to monitor people’s basic health metrics using ambient sensors and will particularly focus on whether someone is frequenting the bathroom more often or spending more time in bed than normal.