Is AT&T Stock a Buy Now?
AT&T (NYSE: T) posted its fourth-quarter earnings report on Jan. 25. The telecom giant's revenue from continuing operations rose 1% year over year to $31.3 billion, but missed analysts' expectations by $70 million. However, its adjusted earnings per share (EPS) from continuing operations grew 9% to $0.61 and cleared the consensus forecast by four cents. AT&T's growth rates look stable, but should investors still buy the stock at its six-month high? Let's review its growth rates and valuations to decide.
Over the past two and a half years, AT&T streamlined its business by spinning off DirecTV, divesting WarnerMedia through a merger with Discovery to create Warner Bros. Discovery (NASDAQ: WBD), and selling its smaller media subsidiaries, non-core assets, and real estate. Those divestments finally ended AT&T's messy, debt-driven attempt to build a pay TV and streaming media empire, and enabled it to finally focus on upgrading its core wireless and wireline networks again. Those efforts paid off as its core telecom businesses generated stable growth again.
Image source: AT&T.
Source Fool.com
