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BenzingaEditorial

AT&T’s Business Is on Post-COVID-19 Recovery

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On Thursday, AT & T (NYSE: T) posted strong wireless subscriber growth as it saw its first quarter revenue rise, reflecting that its WarnerMedia business is continuing its recovery from effects brought on by the pandemic. Revenue and earnings topped FactSet estimates.

First quarter figures

With $43.9 billion  in revenue, adjusted earnings amounted to 86 cents a share on revenue of, up from last year’s 84 cents in adjusted earnings per share on a revenue of $42.8 billion.

WarnerMedia revenue for the first quarter of 2021 was up 9.8% from last year’s quarter as it amounted to $8.5 billion, due to higher subscription, advertising and content revenue that reflected “the partial recovery from prior-year impacts of COVID-19.” Ad revenue was up 18.5% as it brought $1.75 billion in revenue to the table, with the return of sports, including the NCAA March Madness tournament that gave the network a boost.

The company spent $4.5 billion in cash for programming and produced film/TV content, rising its spending from $4.3 billion in Q1 2020, net of the elimination of transactions between WarnerMedia business units. WarnerMedia’s direct-to-consumer subscription revenue for the quarter was $1.8 billion, exceeding $1.3 billion in the year-ago quarter and up about 35% YoY. Including $998 billion for content, direct costs for WarnerMedia’s DTC business were $1.7 versus $911 million a year earlier.

HBO Max

In Q1, HBO Max had 9.69 million retail subscribers, as they rose 2.8 million from 6.88 million in the previous quarter. Wholesale HBO Max/HBO customers through Comcast Corporation (NASDAQ: CMCSA) and other distributors ticked up 150,000 to 30.94 million. However, legacy HBO subs, including those through hotels, declined 308,000 sequentially.

During the quarter, HBO Max gained about 3 million total subscribers sequentially, continuing on its growth curve as it was powered in part by big-budget films that streamed during the quarter, eliminating fears that the boost created by WW84’s Christmas release wouldn’t be maintained. As of the end of March, HBO Max/HBO combined had 44.2 million domestic customers, which is 2.7 million more than 41.5 million at the end of 2020. Losses on the legacy HBO side were offset by HBO Max’s retail and wholesale growth.

However, HBO Max isn’t turning in the kind of eye-popping subscriber growth like Walt Disney Company’s (NYSE: DIS) Disney Plus that topped 100 million worldwide users. But AT&T noted that domestic HBO Max and HBO revenue per subscriber for Q1 was $11.72 per month, down 2% from $11.97 for HBO in Q1 2020, but still greater compared to Disney’s reported ARPU of $4.03 per month for the year-end 2020 quarter which was down 28%. Meanwhile, Netflix (NASDAQ: NFLX) remains king as it reported Q1 ARPU of $14.25 for its U.S./Canada region with a 9% increase.

A focus on the customer experience

Compared to last year’s quarter, there were no store closures to make things worse, allowing the company to record $19.0 billion in mobility revenue, up 9.4% from a year earlier. Service revenue grew just 0.6% as subscriber gains were largely offset by weak international roaming due to the pandemic. However, AT&T’s equipment revenue rose 45.2% due to a greater mix of higher priced smartphones.

Promotional strategies were tailored well as they resulted in 595,000 postpaid phone net additions for the quarter and a postpaid phone churn rate of 0.76%, lower than last year’s 0.86% . If we take into account all major wireless companies in the U.S., AT&T has been the most focused since the latest iPhone launch on offering promotions to existing customers as opposed to attempting to lure in customers from other carriers. The company was able to trim costs by moving to public-cloud infrastructure from on-premise data centers, and invest in these customer retention efforts that aimed to get existing customers to upgrade their plans.

The company also added 235,000 AT&T fiber customers. AT&T Chief Communications Officer, Jeff McElfresh,announced the company will simplify its various plans to make the buying experience for the customer even smoother.

In June, WarnerMedia will be coming out with a cheaper, ad-supported version of HBO Max, which will exclude the day-and-date Warner Bros. movie releases but  provide the same content as the regular package. Pricing for this tier that will not include advertising in HBO original series hasn’t been announced. This year, WarnerMedia expects to launch HBO Max in 60 markets outside the U.S., including Latin America and the Caribbean in late June and 21 territories in Europe in the second half of the year.

The winning bundle

Chief Executive John Stankey attributed the company’s performances to a successful combination of services like broadband, wireless, and HBO Max, describing it as the winning bundle that drove churn rates down as customers that used all three services have the lowest-churning rates in the company’s ecosystem.

2021 forecasts

For 2021, AT&T continues to expect consolidated revenue growth of about 1% along with stable adjusted earnings per share. The company tweaked its capital-investment projections and now anticipates about $22 billion in gross capital investment, with capital expenditures of around $17 billion, changing its prior projections of $21 billion and $18 respectively. Maintaining wireless momentum, developing HBO Max’s footprint and growing its fiber business are among the biggest strategic priorities.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

BenzingaEditorial

This Week’s Recap

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The market and the economy continue to open, which is probably a result of bottled-up demand for many products and services affected by the pandemic. Maybe the inflation or rising bond yields will trigger the selloff on the market at some moment, but the current Fed’s transitory inflation message has been accepted by many investors. Also, the best way to deal with inflation is to stay with your investments and keep your faith in the market. So, despite the jump of May’s consumer-price index, that did not affect the investors who adopted a different mindset, so all three major averages finished in a positive zone.

The Dow Jones Industrial Average managed to recover from one of the steeper declines, thanks to gains from companies like IBM (NYSE: IBM), Microsoft (NASDAQ: MSFT), and Salesforce (NYSE: CRM). The Nasdaq Composite Index has also risen 49.09 points to 14,069.42. The tech-heavy index continued with the positive run, led by DocuSign (NASDAQ: DOCU), Zoom Video (NASDAQ: ZM), and CrowdStrike (NASDAQ: CRWD).

Tuesday brought us an earnings report from Oracle

Although it was a slim week for the earnings reports, Oracle (NYSE: ORCL) announced its last quarter results, as well as plans and guidance. The results are better than expected, as the achieved revenues were $11.23 billion (compared to the expected $11.04 billion) and the achieved adjusted earnings of $1.54 per share (compared to the expected $1.31). On the other hand, the company revealed its quarterly revenue guidance, which is lower than expected due to the plans to increase investments to support its cloud strategy and keep migrating existing on-premises customers to the cloud. This all led to a share fall of 5%, as many investors are skeptical if Oracle can successfully compete with major “cloud” players like Amazon (NASDAQ: AMZN), Salesforce, or Workday (NASDAQ: WDAY).

Adobe reported impressive results on Thursday

The Wall Street analysts recognized the work-from-home trend and this second digitization era as the main reasons for Adobe’s (NASDAQ: ADBE) sustained growth and therefore a monster quarter. And they were right. The company reported revenues of $3.84 billion, which is an increase of 23% compared year to year. That is also above the Wall Street estimate of $3.73 billion. The digital media business revenues, consisting of Creative Cloud and Document Cloud, grew by 25% compared to the previous year. The adjusted earnings per share were $3.03, which is higher than the estimated $2.81. For the following quarter, the company expects revenues of $3.88 billion and adjusted earnings per share of $3.00.

Conclusion

All these factors taken together, proven by positive index movements and earnings results better than anticipated, support the fact that the economic recovery is firmly underway, and those are very encouraging news.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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BenzingaEditorial

Several new earnings reports and more management presentations this week

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We might be witnessing the lower volume of quarterly earnings reports this week, but that only means we passed last quarter’s report peak and we are getting ready for the June-quarter earnings season, which will hit us not long after the 4th of July. However, we do not lack many management presentations, which are typical after announcing earnings reports. This week brings us news for future result expectations from more than 30 companies, so let’s try and not miss any important clues. Besides earnings reports, this week is bringing us a total of 9 new IPOs like Marqeta, Inc. (NASDAQ: MQ), TaskUs, Inc. (NASDAQ: TASK), LifeStance Health Group, Inc. (NASDAQ: LFST), monday.com Ltd. (NASDAQ: MNDY), Zeta Global Holdings Corp.(NYSE: ZETA) and Jaws Hurricane Acquisition Corp (NASDAQ: HCNEU).

Monday

Yesterday we saw the first quarter report of fiscal 2022 for Marvell Technology (NASDAQ: MRVL), a Delaware-based company that develops and produces semiconductors and related technology. Marvel Technologies reported new revenues of $832 million, which is an increase of 20% year-to-year. GAAP gross profit margin was 50.2% and non-GAAP gross margin was 64.3%, while GAAP diluted loss per share was $0.13 and non-GAAP diluted income per share was $0.29.

Also, Vail Resorts, Inc. (NYSE: MTN) which owns and operates several premier mountain resorts in Colorado and California, reported fiscal 2021 third-quarter results yesterday. The report showed a net income of $274.6 million which is an increase of 80% compared to the third fiscal quarter of 2020. The reported EBITDA was $462.2 million, which is a significant increase from last year same quarter’s $304.4 million.

Tuesday

Besides earnings reports from Navistar International (NYSE: NAV) and Calavo Growers (NASDAQ: CVGW) on Tuesday, we are also expecting reports from Thor Industries (NYSE: THO), Casey’s General Stores (NASDAQ: CASY), and ABM Industries (NYSE: ABM).

Wednesday

Wednesday is reserved for earnings reports from Brown Forman (NYSE: BF-B), United Natural Foods (NYSE: UNFI), and Restoration Hardware (NYSE: RH). RH, the California-based furnishing company is expected to report earnings of $3.99 per share, which is growth of over 214% compared to the same period last year. Also, GameStop Corp (NYSE: GME), one of the world’s largest video game retailer’s earnings report is expected on Wednesday. The expected loss for the first quarter is $0.68 per share, which is an improvement from the same period last year (-%1.61 per share). In order to accelerate its transformation, the company decided to restructure its board, so it can keep up with industry growth and company expansion in the digital arena.

Thursday

On Thursday, we expect to see reports from National Beverage (NASDAQ: FIZZ), Chewy (NYSE: CHWY), and Dave & Buster’s (NASDAQ: PLAY). Chewy, the Florida-based pet store retailer, is expected to report a quarterly revenue growth of over 125%, compared year over year.

Friday

We are not expecting any major earnings reports on Friday.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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BenzingaEditorial

The week may be starting slowly but do not let that mislead you

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The celebration of Memorial Day in the U.S. caused the slower start, but the rest of the week will bring us plenty of news, updates, and earnings reports from companies like Zoom Video Communications (NASDAQ: ZM), Hewlett-Packard Enterprise (NYSE: HPE), Advanced Auto Parts (NYSE: AAP) and Slack Technologies, Inc. (NYSE: WORK). This week will also bring us news from the EV and the IPO worlds, as well as the 2021 Bitcoin conference, one of the biggest cryptocurrency events this year. Before we move to the day-to-day highlights, if you are a small business owner, do not miss today’s deadline to apply for the latest round of the Paycheck Protection Program funding.

Tuesday

This week’s earnings reports will be led by Kirkland’s Inc (NASDAQ: KIRK), and that is due before the market opens. It will be followed by HP’s and Zoom’s earnings reports, after the bell. SoFi Technologies (NYSE: SOFI) is a fintech startup IPO joining the trading world after its SPAC merger on Friday.

 

Wednesday

Before the market opens on Wednesday, we are expecting the earnings reports from Advance Auto Parts and Lands’ End Inc (NASDAQ: LE). The reports will keep coming after the bell as well, so we are keen to see how NetApp Inc (NASDAQ: NTAP), Endeavor Group Holdings (NYSE: EDR), Splunk Inc (NASDAQ: SPLK), and PVH Corp (NYSE: PVH) did in the previous period. Wednesday is also the day when we are expecting the Beige Book, which will give us the latest analysis of the economic conditions in the U.S. as the COVID-19 restrictions reduce.

Thursday

Thursday is expected to be the busiest of the week, when we expect earnings reports from Express Inc (NYSE: EXPR), Asana Inc (NYSE: ASAN), Duluth Holdings Inc (NASDAQ: DLTH), Broadcom Inc (NASDAQ: AVGO), The Toro Company (NYSE: TTC), The Cooper Companies (NYSE: COO), Science Applications International Corporation (NYSE: SAIC), Lululemon Athletica (NASDAQ: LULU), as well as Slack Technologies.

Thursday is a big day for NVIDIA Corporation (NASDAQ: NVDA) also. After reporting the record profits and earnings, highly affected by the company’s revenues from graphic cards for crypto mining, the shareholders will vote on a 4-for-1 stock split. That will increase the number of authorized shares of common stock, and if approved, each shareholder will receive an additional dividend of three additional shares.

Thursday will be also interesting in the automotive world. Kia will start taking reservations for its new EV6 crossover, while Nio Inc (NYSE: NIO), the Chinese automaker, will hold a general meeting so it can increase the diversity of its board.

This day will also be dominated by cryptocurrencies, as the 2021 Bitcoin conference, taking place in Miami, will kick-off.

Friday

The week’s end is reserved for the earnings report from Hooker Furniture Corporation (NASDAQ: HOFT), and that is expected before the opening bell. During the rest of Friday, we will focus on the latest unemployment rates and data.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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