This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Market Preview: A Messy Pullback

As for Wednesday's scheduled news, AT&T Corp. (T - Get Report) is slated to report its third-quarter results before the opening bell and the average estimate of analysts polled by Thomson Reuters is for earnings of 60 cents a share in the September-ended period on revenue of $31.58 billion.

Shares of the communications giant are up more than 15% so far in 2012, despite earnings and revenue remaining relatively flat throughout the year. The company enjoyed a record sales day in the wake of the release of the iPhone 5 in mid-September, and the stock hit a 52-week high of $38.58 shortly after on Sept. 21. The trend in margins, however, has become a concern for the big wireless providers, so investors will be anxious for color on how AT&T fared ahead of the iPhone's arrival as well as what its expectations are for the remainder of the year.

The sell side is pretty down on AT&T ahead of the release with 26 of the 39 analysts covering the stock at either hold (24) or underperform (2). The 12-month median price target sits at $36.75.

Deutsche Bank, which has a hold rating and $34 price target on the stock, is in line with the consensus profit view.

"We are focused on 4 issues: (1) visibility on 4Q wireless margins based on expected smartphone sales (est 17.1M YTD vs. '12 guidance of 25M); (2) T's outlook for ARPU growth based on shared data plan adoption; (3) visibility on wireline enterprise revenue growth; and (4) uses of cash in coming quarters, including spectrum purchases, buybacks and capex," the firm said in its preview of the results on Tuesday. "We believe T's 5% dividend yield provides downside support, but we maintain Hold as we see limited upside potential to EPS estimates or P/E near term."

Check out TheStreet's quote page for AT&T for year-to-date share performance, analyst ratings, earnings estimates and much more.
2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BA $132.49 -1.13%
FB $117.43 -0.96%
NFLX $91.54 -1.69%
SIRI $3.95 -0.50%
T $38.91 -0.49%


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASDAQ 4,763.2240 -54.37 -1.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs