Hilliard Lyons Downgrades AT&T (T) to Neutral (Earlier)
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Hilliard Lyons downgraded AT&T (NYSE: T) from Buy to Neutral following weak first quarter results.
Analyst David Burks commented, "We are reducing our rating on AT&T to Neutral from Buy following the release of weaker than anticipated first quarter results. It’s not just that results were disappointing, but the possibility that some of the negative first quarter trends could potentially persist much of the year. Both revenue and earnings were below expectations. Revenues declined by 1.1% to $38.9 billion and were below consensus expectations of $39.3 billion. While earnings were $0.85 per share versus $0.74 per share in last year’s first quarter, earnings were below the consensus estimate and largely benefited from tax reform. Total EBITDA (earnings before interest, taxes,
depreciation and amortization) was $12.2 billion compared with an expectation of $13.2 billion. T’s adjusted operating margin declined to 17.7% from 19.4%, driven by sales activity and video transition pressure. In sum, we believe that with a majority of T’s operations under pressure, a Neutral rating is now more appropriate."
For an analyst ratings summary and ratings history on AT&T click here. For more ratings news on AT&T click here.
Shares of AT&T closed at $35.20 yesterday.
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