What Did We Learn?

Before its Analyst Day in Dallas, Texas, AT&T announced revised guidance for the year, and provided an outlook for 2016 to reflect the closing of DirecTV. The company now expects 2015 earnings per share of $2.62 to $2.68, which most consider a positive starting point for the company. Management also noted that capex for 2015 will be in the $21 billion range. Amir Rozwadowski of Barclays explained, “Our initial take is that this is a pickup in spending. If we assume a half a year of ownership of DIRECTV, on a straight line basis that would suggest $1.5 billion in capex (assuming a steady $3.0 billion run rate). Coupled with AT&T’s prior capex outlook would suggest total capex of $19.5 billion vs. guidance of $21.0 billion.” Continue reading here.