{"id":1574,"date":"2023-02-15T08:37:01","date_gmt":"2023-02-15T08:37:01","guid":{"rendered":"https:\/\/tradersontrend.com\/?p=1574"},"modified":"2023-02-15T08:37:01","modified_gmt":"2023-02-15T08:37:01","slug":"after-losing-money-last-year-is-att-a-buy-for-2023","status":"publish","type":"post","link":"https:\/\/tradersontrend.com\/h\/2023\/02\/15\/after-losing-money-last-year-is-att-a-buy-for-2023\/","title":{"rendered":"After Losing Money Last Year, is AT&#038;T a BUY for 2023?"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"1574\" class=\"elementor elementor-1574\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-12d0d3a5 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"12d0d3a5\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-465dabbc\" data-id=\"465dabbc\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-4bdd6d16 elementor-widget elementor-widget-text-editor\" data-id=\"4bdd6d16\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.21.0 - 26-05-2024 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<p>This inconsistency can make it difficult for investors to determine whether it is a good moment to invest in AT&amp;T. After all, the company&#8217;s success was achieved in a difficult macroeconomic climate of high inflation and rising interest rates.<br \/><br \/><span style=\"font-family: inherit;\">Let&#8217;s take a look at AT&amp;T&#8217;s 2022 results to see where the iconic telecom stands today. <br \/><br \/>This data might help you decide whether now is the ideal moment to invest.<br \/><br \/><\/span><strong><span style=\"font-size: 24.5px; font-family: inherit;\">AT&amp;T&#8217;s performance in 2022<br \/><br \/><\/span><\/strong><span style=\"font-family: inherit;\">After adjusting for divested businesses, <\/span><a style=\"font-family: inherit;\" href=\"https:\/\/about.att.com\/story\/2023\/q4-earnings-2022.html\">AT&amp;T ended 2022<\/a><span style=\"font-family: inherit;\"> with $120.7 billion in revenue, up from $118.2 billion in 2021. <br \/><br \/>The company&#8217;s mobile activities performed even better, earning $81.8 billion in 2022 versus $78.3 billion in 2021. <br \/><br \/>In fact, 2022 was the most profitable year in AT&amp;T&#8217;s mobile business history, and profit growth is expected to continue this year.<\/span><\/p><p>Strong customer growth drove this company&#8217;s mobile success. <br \/><br \/>Net additions among postpaid phone customers, the telecom industry&#8217;s most valuable customer segment, totaled nearly 3 million in 2022 \u2013 and nearly 7 million since <a href=\"https:\/\/www.nytimes.com\/2020\/04\/24\/business\/media\/att-ceo-john-stankey-randall-stephenson.html#:~:text=AT%26T%2C%20the%20telecommunications%20giant%20that,has%20led%20AT%26T%20since%202007.\">John Stankey took over as CEO in 2020<\/a>, representing the company&#8217;s best period of customer growth in over a decade.<\/p><p>AT&amp;T is also seeing an increase in customer adoption of its fiber optic internet service. <br \/><br \/>Last year was the fifth consecutive year that it added 1 million or more fiber customers.<\/p><p><a href=\"https:\/\/www.lightreading.com\/broadband\/atandts-fiber-sub-base-surpasses-its-non-fiber-base-\/d\/d-id\/781215\">Fiber surpassed non-fiber broadband connections<\/a> for the first time in the second half of 2022, indicating that fiber&#8217;s momentum is continuing. <br \/><br \/>This is a significant milestone because both 5G and fiber expansion are critical to AT&amp;T&#8217;s future revenue growth strategy.<br \/><br \/><strong><span style=\"font-size: 24.5px; font-family: inherit;\">Factors Contributing to AT&amp;T&#8217;s Net Loss<br \/><br \/><\/span><\/strong><span style=\"font-family: inherit;\">With all its success in 2022, how did AT&amp;T end the year with a net loss? Its old landline business was the culprit. <br \/><br \/>The company&#8217;s landline revenue is slowly withering away. AT&amp;T&#8217;s business and consumer wireline divisions saw 2022 revenue sink to $35.3 billion from $36.5 billion in 2021.<\/span><\/p><p>Due to these declining assets, AT&amp;T booked an accounting write-off of about $25 billion in Q4, called a goodwill impairment charge. <br \/><br \/>While the amount is substantial, it&#8217;s an understandable write-down since landlines are fading in favor of the secular trend of 5G wireless technology.<\/p><p>On top of this write-off, AT&amp;T had allocated $24 billion in capital expenditures for 2022 to expand its fast-growing 5G and fiber optic networks. <br \/><br \/>These two factors combined to push AT&amp;T into unprofitable territory last year.<\/p><p>Although costly, the capital investments are paying off. AT&amp;T anticipates wireless service and broadband revenues to continue growing in 2023 by at least 4% over last year despite a tough macroeconomic environment.<\/p><p>Moreover, industry forecasts estimate consumers will aggressively adopt 5G as network coverage improves and 5G-compatible devices become cheaper. <br \/><br \/>Consequently, U.S. 5G subscriptions are expected to balloon from 14.4 million in 2020 to over 400 million by 2027. This trend bodes well for AT&amp;T&#8217;s wireless business&#8217;s continuing expansion.<br \/><br \/><strong><span style=\"font-size: 24.5px; font-family: inherit;\">AT&amp;T, Buy or Sell<br \/><br \/><\/span><\/strong><span style=\"font-family: inherit;\">Along with revenue growth, AT&amp;T has sought to reduce debt, reducing net debt by around $24 billion last year, and preserving <\/span><a style=\"font-family: inherit;\" href=\"https:\/\/www.investopedia.com\/ask\/answers\/033015\/what-formula-calculating-free-cash-flow.asp#:~:text=Free%20cash%20flow%20(FCF)%20is,and%20capital%20expenditures%20(CapEx).\">free cash flow (FCF)<\/a><span style=\"font-family: inherit;\">. <br \/><br \/>Because FCF is required to finance AT&amp;T&#8217;s high-yield dividend, the company&#8217;s FCF results are critical for investors.<\/span><\/p><p>AT&amp;T needed $6 billion in Q4 FCF at the end of Q3 to meet its year-end target of $14 billion. <br \/><br \/>The telecom met its target of $6.1 billion in the fourth quarter. AT&amp;T anticipates increased FCF in 2023, with a target of at least $16 billion.<\/p><p>The FCF estimate for this year provides assurance that this company&#8217;s dividend is secure. <br \/><br \/>Investors can gain from the dividend, which presently yields 5.8%, as the company&#8217;s revenue mix switches progressively to 5G wireless and fiber optic internet goods, with landlines contributing less and less over time.<\/p><p>As a result, an investment in AT&amp;T would be long-term. <br \/><br \/>Under Stankey&#8217;s guidance, the corporation has shown to be in solid hands. It focuses on high-growth areas while maintaining cost and debt-reduction discipline. <br \/><br \/>All of these are evidence that AT&amp;T is on the right course to long-term success in the extremely competitive US telecom market. <br \/><br \/>AT&amp;T is an excellent long-term investment given the plethora of positives surrounding the company&#8217;s operations and a reliable dividend.<\/p><p><em>For More Stocks And Investment Related News, Click\u00a0<a href=\"https:\/\/tradersontrend.com\/\" target=\"_blank\" rel=\"noopener\" data-saferedirecturl=\"https:\/\/www.google.com\/url?q=https:\/\/tradersontrend.com\/&amp;source=gmail&amp;ust=1676553224289000&amp;usg=AOvVaw1vtUisg7GCOA2VlMYFxqvg\">Here<\/a>.<\/em><\/p><p>\u00a0<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>This inconsistency can make it difficult for investors to determine whether it is a good moment to invest in AT&amp;T. After all, the company&#8217;s success was achieved in a difficult macroeconomic climate of high inflation and rising interest rates. Let&#8217;s take a look at AT&amp;T&#8217;s 2022 results to see where the iconic telecom stands today&#8230;.<\/p>\n","protected":false},"author":1,"featured_media":1576,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[46,204,408,590],"class_list":["post-1574","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-newsletter","tag-att","tag-earnings","tag-mobile","tag-telecom"],"_links":{"self":[{"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/posts\/1574","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/comments?post=1574"}],"version-history":[{"count":0,"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/posts\/1574\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/media\/1576"}],"wp:attachment":[{"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/media?parent=1574"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/categories?post=1574"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/tags?post=1574"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}