NEW YORK (TheStreet) -- AT&T (T) - Get Report stock is rising by 0.43% to $35.15 in late morning trading on Tuesday, before the company's 2015 fourth quarter financial results, due out after the market close this afternoon.

The Dallas-based telecommunications company is expected to post top and bottom line growth, driven by the $49 billion acquisition of DirecTV that closed last July.

For the 2015 third quarter, AT&T warned that analysts may be overestimating the company's results after the DirecTV transaction closed, according to the Wall Street Journal.

The company's reporting structure has also been reorganized, making year-over-year comparisons difficult, the Journal added.

Analysts have estimated for earnings of 63 cents per share on revenue of $42.75 billion for the latest quarter, compared with earnings of 55 cents per share on revenue of $34.44 billion that AT&T reported for the 2014 fourth quarter.

Analysts are also anticipating a drop in subscribers until the company makes its prices more competitive, according to Pacific Crest.

Before the market open this morning, AT&T competitor Sprint Corp. (S) reported postpaid net additions of 501,000 for the quarter ended December 31, up from 30,000 new subscribers for the previous quarter.

TheStreet Recommends

Separately, AT&T has a "buy" rating and a letter grade of B- at TheStreet Ratings because the company's revenue growth, good cash flow from operations, expanding profit margins and solid stock price performance, which offsets somewhat disappointing return on equity.

You can view the full analysis from the report here: T

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

Image placeholder title


data by