Scalper1 News
Bears are growling at AT&T (T) ahead of its third-quarter earnings report next week. The phone company missed analysts’ consensus EPS and revenue estimates in Q2. Growing use of so-called “equipment-installment plans”(EIP) by wireless phone companies, which has blurred the line between postpaid customers billed monthly and less-lucrative prepaid subscribers who buy service time as needed, has spooked some investors, some analysts say. “Yes, (AT&T) is a hugely popular short,” said Craig Moffett, an analyst at MoffettNathanson. “The accounting change to equipment financing plans has flattered what would otherwise be very weak numbers. There are a lot of savvy investors who are betting that the market will eventually figure it out.” Moffett rates AT&T stock neutral. AT&T was down a fraction in midday trading in the stock market today and is down 7% since last July. The company is scheduled to report Q3 earnings on Oct. 22. Analysts polled… Scalper1 News
Scalper1 News