The Zacks Analyst Blog Highlights: AT&T, Comcast, Sprint, Nokia and Alcatel-Lucent - Press Releases
For Immediate Release
Chicago, IL – July 31, 2015 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the AT&T Inc. (T), Comcast Corp. (CMCSA), Sprint Corp. (S), Nokia Corp. (NOK) and Alcatel-Lucent ( ALU).
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Here are highlights from Thursday’s Analyst Blog:
Telecom Stock Roundup
The telecom sector is witnessing a deluge of second-quarter 2015 earnings releases apart from a few consequential developments. Telecom behemoth AT&T Inc. (T) reported mixed financial results in the second-quarter 2015 wherein earnings per share outpaced the Zacks Consensus Estimate while revenues lagged the same. However, the company added 2.1 million wireless subscribers in the quarter.
In addition, AT&T completed the acquisition of DIRECTV after receiving the final approval from the Federal Communications Inc. (FCC). The transaction was on hold for the last 14 months and marked one of the biggest merger and acquisition deal in the pay-TV industry, which is currently witnessing significant consolidation. However, in order to attain the FCC’s approval, AT&T has agreed to certain conditions.
Meanwhile, the telecom sector has so far delivered a mixed second-quarter 2015 earnings session. Companies like Comcast Corp. (CMCSA) have reported mixed results. On the other hand, the stock price of Sprint Corp. (S) plummeted considerably in the last week owing to market concerns over the company’s cash position and long-term competitiveness. Sprint will declare its earnings results next week.
In Europe, Nokia Corp. (NOK) has cleared a major regulatory hurdle regarding its proposed takeover of Alcatel-Lucent (ALU) after receiving a go ahead from the European Commission. (Read the last Telecom Stock Roundup for Jul 23, 2015 .)
Recap of the Week’s Most Important Stories
1. AT&T reported financial numbers for the second quarter of 2015. The company’s earnings surpassed the Zacks Consensus Estimate while revenues missed the same. AT&T’s adjusted earnings per share moved up 11.3% year over year to 69 cents, beating the Zacks Consensus Estimate of 63 cents.
On a GAAP basis, the company reported net income of $3.1 billion or 58 cents per share in comparison with net income of $3.6 billion or 68 cents in the year-ago quarter. Quarterly total revenue increased 1.4% year over year to $33,015 million but lagged the Zacks Consensus Estimate of $33,085 million. (Read More: AT&T Q2 Earnings Beat as Wireless Subscribers Increase .)
2. AT&T has scaled up to the highest position in the U.S. pay-TV market with the acquisition of DIRECTV. After a gap of over a year, AT&T has finally received the green signal for the takeover from the FCC. Meanwhile, the Department of Justice (DOJ) has concluded its review and has confirmed that the deal does not pose any competitive threat.
In May 2014, AT&T had inked a definitive agreement to buy U.S. satellite TV operator DIRECTV for $48.5 billion, in a cash and stock deal. For the successful completion of the deal, AT&T has made a few commitments to the FCC. (Read More: AT&T-DIRECTV Deal Crosses the FCC Hurdle, Closes .)
3. Recently, the European Commission (EC), the telecom regulatory body of the European Union (EU), approved the Nokia/Alcatel-Lucent merger deal following a Phase 1 review without enforcing any condition. The EC concluded that the merger will not have any impact on competition as the geographical areas of operations of these two entities are largely different. Moreover, post-merger, a number of strong global competitors will remain in the market. The proposed merger is expected to close by mid-2016. (Read More: Nokia Gets EU Regulatory Nod for Alcatel-Lucent Takeover .)
4. Sprint suffered a major setback as its stock price plunged significantly last week. As the U.S. market boasts a high 95% rate of wireless penetration, competition is likely to remain intense. This, in turn, could pressure top and bottom-line results for carriers vying for market share. Several analysts remain concerned about the company’s cash position. The company suffers from a structural deficiency of limited availability of low and mid-band spectrum. (Read More: Sprint Plummets, Will It Continue Downhill? )
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AT&T INC (T): Free Stock Analysis Report
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NOKIA CP-ADR A (NOK): Free Stock Analysis Report
ALCATEL ADS (ALU): Free Stock Analysis Report
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