Company Update (NYSE:T): AT&T Throws In IPads With IPhones to Boost Tablet Subscriptions

AT&T Inc (NYSE:T) [at Bloomberg] – AT&T Inc. (T) is dangling $200 discounts on iPads as part of an iPhone sales promotion aimed at clearing inventory ahead of the next iPhone and at boosting the number of data-device subscribers. With the introduction of Apple Inc. (AAPL)’s new iPhone expected next month, AT&T, the second-largest U.S. wireless carrier, started the limited-time offer in stores today for customers buying the iPhone 5s and iPhone 5c. If users opt to pay full price for new iPhones through an installment plan, they can get a $200 discount on an iPad with a two-year service contract.
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AT&T, Inc. (T), with a current market cap of $179.75B, started trading this morning at $34.76.
 
A quick look at the market, the company’s stock traded between $34.50 and $34.83 and has traded between $31.74 and $37.48 over the past 12 months.
 
T shares are currently priced at 13.32x this year’s forecasted earnings, which makes them relatively inexpensive compared to the industry’s 19.78x earnings multiple for the same period.
 
The company pays shareholders $1.84 per share annually in dividends, yielding 5.20%.
 
Consensus earnings for the current quarter by the 22 sell-side analysts covering the stock is an estimate of $0.65 per share, which would be $0.01 worse than the year-ago quarter and a $0.05 sequential decrease. Investors should also note that the full-year EPS estimate of $2.60 is a $0.10 improvement when compared to the previous year’s annual results.
 
The quarterly earnings estimate is based on a consensus revenue forecast of the current quarter of $33.48 Billion. If realized, that would be a 4.10% increase over the year-ago quarter.
 
More recently, Argus upgraded T from Hold to Buy (Jun 10, 2013). Previously, Barclays Initiated T at to Equal Weight.
 
Given all the information above, we should disclose to readers that the average price target is $36.18, which is 4.09% above than it opened this morning.
 
Summary (NYSE:T) :  AT&T Inc. provides telecommunications services to consumers and businesses in the United States and internationally. Its Wireless segment offers various wireless voice, data, text, and other services, including local wireless communications services, long-distance services, and roaming services. This segment also sells various handsets, wirelessly enabled computers, and personal computer wireless data cards through its owned stores, agents, or third-party retail stores; and accessories comprising carrying cases, hands-free devices, batteries, battery chargers, and other items to consumers, as well as to agents and third-party distributors. As of December 31, 2013, this segment served approximately 110 million wireless subscribers. The company’s Wireline segment provides data services, such as switched and dedicated transport, DSL Internet access, network integration, managed Web-hosting, packet, and enterprise networking services, as well as local, interstate, and international wholesale networking capacity to other service providers. This segment also offers voice services consisting of local and long-distance services; wholesale switched access services to other service providers; and outsourcing services, integration services and customer premises equipment, and government-related services. This segment served approximately 12 million retail consumer access lines, 10 million retail business access lines, and 2 million wholesale access lines. The company has strategic relationship with IBM to provide businesses with a source for network security and threat management. The company was formerly known as SBC Communications Inc. and changed its name to AT&T Inc. in November 2005. AT&T, Inc. was founded in 1983 and is based in Dallas, Texas.
 
Tag Helper ~ Stock Code: T | Common Company name: AT&T | Full Company name: AT&T Inc (NYSE:T) .

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Read more on AT&T, IPhone at Wikinvest

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