William Blair Maintains Market Perform On AT&T Ahead Of 2Q14 Earnings Report

In a research note published yesterday, William Blair analyst Jim Breen maintained a Market Perform rating on AT&T Inc. (T) ahead of T’s 2Q14 earnings report. No price target was assigned.

Breen wrote, “We estimate second-quarter revenue of $33.26 billion, compared with the consensus of $33.29 billion. Broken down, we forecast wireless sales of $15.82 billion, compared with $15.37 billion last quarter, on the addition of 850,000 new postpaid subscribers. Our estimate for second-quarter average revenue per user is $45.25, which is roughly flat with last quarter’s $45.31 (William Blair calculation). We estimate second-quarter adjustedEBITDA of $10.57 billion, compared with the consensus of $10.66 billion. Our forecast implies an EBITDA margin of 31.8%, which is down from 33.5% in the first quarter because of greater postpaid net additions and the closing of the lower-margin LEAP acquisition”.

The analyst concluded: “Despite positive developments, we maintain our Market Perform rating on shares as we believe that competitive pressure and industry maturation will limit upside over the long term, despite positive developments this quarter”.

According to TipRanks.com, which measures analysts and bloggers success rate based on how their calls perform, analyst Jim Breen currently has a one-year average return of -27% and a 33% success rate. Breen is ranked #3069 out of 3216 analysts.


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