AT&T earnings preview

AT&T's Q2 Earnings Beat Drives Optimism

AT&T Inc. (T) reported Q2 earnings of $4.591 billion, or $0.66 per share, up from $4.464 billion, or $0.62 per share, in 2021. Adjusted EPS was $0.65, surpassing the $0.59 consensus. Revenue rose 2.3% to $31.6 billion, driven by subscriber growth.

Telecom Sector Benefits, Valuation Repricing Likely

AT&T's strong results pushed its stock up 2.5% in after-hours trading. The positive earnings surprise and subscriber growth may boost investor confidence in the broader telecom sector. Valuation repricing could follow, with AT&T's forward P/E ratio potentially narrowing its discount to the industry average.

Q3 Guidance and 5G Rollout to Watch

Next, investors await AT&T's Q3 guidance and any updates on its 5G network expansion. The company's 5G rollout pace and subscriber retention will be crucial to sustaining its recent momentum. Additionally, the upcoming Q3 earnings season will provide further context for AT&T's performance relative to peers.