AT&T shares fall the most in 12 weeks on Wednesday, first-quarter revenue falls short of estimates due to lower-than-anticipated revenue in WarnerMedia, Mobility units

AT&T Incs (T) first-quarter revenue, reported on Wednesday, fell short of Wall Street estimates, pressured by lower-than-anticipated revenue in its WarnerMedia and Mobility units.

AT&T shares closed lower for the fourth time in the past fifteen trading sessions in New York on Wednesday. It has also been the steepest daily loss since January 30th. The stock went down 4.08% ($1.31) to $30.79, after touching an intraday low at $30.52, or a price level not seen since March 21st ($30.45).

Shares of AT&T Inc have risen 7.88% so far in 2019 compared with a 16.77% gain for the benchmark index, S&P 500 (SPX).

In 2018, AT&T Inc’s stock went down 26.59%, thus, it again underperformed the S&P 500, which registered a 6.24% loss.

Total revenue went up 18% year-on-year to $44.83 billion during the first quarter, while missing the median analyst estimate of $45.11 billion.

Revenue from AT&Ts WarnerMedia, which encompasses premium TV channel HBO and Turner, was reported at $8.38 billion during the period, again below market consensus estimate of $8.45 billion.

Revenue from AT&T’s entertainment unit, which also includes satellite TV provider DirecTV, shrank 1% year-on-year to $11.33 billion during the first quarter.

At the same time, revenue from AT&T’s largest unit, Mobility, which encompasses the companys wireless business, was reported at $17.57 billion during the period. The figure fell short of the median analyst forecast of $17.65 billion.

The company reported a net phone subscriber growth of 80 000 during the quarter, as it reduced the prices of its offers. In comparison, analysts on average had expected a loss of 44 000 subscribers.

Meanwhile, net income attributable to shareholders shrank to $4.1 billion ($0.56 per share) during the first quarter from $4.66 billion ($0.75 per share) in the year-ago period.

Earnings per share, which exclude special items, were reported at $0.86 during the latest quarter, thus, matching a consensus of estimates.

According to CNN Money, the 25 analysts, offering 12-month forecasts regarding AT&T Inc’s stock price, have a median target of $34.00, with a high estimate of $43.00 and a low estimate of $22.00. The median estimate represents a 10.43% upside compared to the closing price of $30.79 on April 24th.

The same media also reported that 12 out of 30 surveyed investment analysts had rated AT&T Inc’s stock as “Buy”, while other 12 – as “Hold”. On the other hand, 2 analysts had recommended selling the stock.

Weekly Pivot Levels

By using the traditional method of calculation, the weekly levels of importance for AT&T Inc (T) are presented as follows:

Central Pivot Point – $32.04
R1 – $32.24
R2 – $32.44
R3 – $32.64
R4 – $32.83

S1 – $31.84
S2 – $31.64
S3 – $31.44
S4 – $31.23

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