On July 22, $T (+1,4%) its quarterly earnings. The current analyst consensus expects:
- EPS: $0.59
- Revenue: 31.81B USD
For me, however, the key metrics for a telecommunications company are primarily the operating figures. I’m particularly interested in the trend in mobile and fiber-optic subscriber numbers, the growth in service revenue, average revenue per user (ARPU), the churn rate, as well as free cash flow and further debt reduction. In my view, free cash flow is the most important indicator, as it forms the basis for dividends, investments, and financial flexibility. Following the last quarter, management continues to stick to its target of over 18 billion USD in free cash flow for the full year. The key question will be whether this target is reaffirmed. At the same time, ARPU and churn provide good insight into whether $T (+1,4%) is growing profitably and can retain its customers over the long term.
Another point I will be closely monitoring is management’s outlook. Competition in the U.S. telecommunications market remains intense, and the topic of satellite-based mobile services—centered on Starlink and AST SpaceMobile—is increasingly coming into focus. In the short term, I personally do not yet expect any significant impact on the figures here, but in the long term, the market is likely to pay close attention to the strategic positioning of $T (+1,4%) .
The return of capital also remains an area of interest. I do not currently anticipate any major changes to the dividend policy or a new share buyback program. Rather, the focus is likely to remain on using the high free cash flow for investments in fiber-optic expansion and further debt reduction.
Analyst sentiment is currently largely positive. Many firms see $T (+1,4%) the company is on the right track following the operational improvements of recent quarters. Historically, stock price reactions following the latest quarterly results have tended to be rather moderate. The decisive factor has often been management’s outlook rather than minor deviations in revenue or EPS. Of course, this does not guarantee how the stock price will react in the future.
Personally, I expect a solid quarter. For me, however, the key factor will be whether $T (+1,4%) the company consistently continues on its current course regarding fiber-optic expansion, cash flow generation, and debt reduction. If it succeeds, I see the investment thesis of a long-term attractive dividend stock as still valid.
Personally, $T (+1,4%) this is currently one of the positions I’m not expanding further. Rather, it’s among the stocks I regularly review and for which I would also consider a possible sale in due course. This makes me all the more eager to see whether the upcoming quarterly results will change my perspective or confirm my current assessment.
~ Not investment advice ~