Investors await two key events for telecom giant AT&T (T).
First, the Street is closely watching to find out pricing for AT&T’s “DirecTV Now,” a 100-plus-channel Internet video service that’s expected to launch this quarter. It could sell the service for $55 a month, Nomura Securities said Friday, while UBS has estimated $50 monthly.
Second, AT&T’s earnings report is due out October 25 after the close. Analysts expect a flat Q3 profit of 74 cents a share on 5% higher sales to $41.13 billion. That would extend its earnings slowdown for a third straight quarter. But Q4 consensus estimates call for a return to growth with a 6% rise to 67 cents on a 0.5% revenue increase to $42.35 billion.
AT&T currently pays a quarterly dividend of 48 cents a share, or $1.92 for the full year, for a 4.9% annualized yield. The Dallas-based telecom is an S&P 500 Dividend Aristocrat — a company that has raised its dividend each year for at least the past 25 consecutive years.
T is a Cabot Benjamin Graham Value Investor stock.