"We update forecasts to account for further evidence of increased wireless competition. The key financial impact is a reduction to our wireless EBITDA margin estimate to 38.2% (from 41.5% previously) for 4Q14 and to 44% (from 45.1% previously) for 2015," Goldman said.
"This is the primary reason we have also lowered our EPS estimates (4Q14, down 7 cents to 53 cents, 1Q15, down 2 cents to 65 cents)" analysts added.
"We update forecasts to account for higher valuations in the AWS-3 auction. We now expect AT&T to spend $16.3 billion for a nationwide 20MHz license (H and I blocks) in 1Q15; this is up from our prior estimate of $8 billion," Goldman noted.
Specifically, analysts said fourth-quarter margin pressure is largely a function of increased volumes and promotional offers.
Separately, TheStreet Ratings team rates AT&T INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate AT&T INC (T) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures, notable return on equity and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."