Telecomms: The Most Interesting Sector Going Into Earnings

Aside from earnings number, there are some other interesting things happening in the telecom companies. For instance, AT&T Inc. (NYSE: T) is in the news for acquiring Time Warner Inc (NYSE: TWX) and traders are still discussing Verizon Communications Inc. (NYSE: VZ)'s move to buy Yahoo! Inc. (NASDAQ: YHOO) following the data breach.

AT&T

• Plans to acquire Time Warner for $107.50 a share.
• Reported adjusted EPS of $0.74 on revenue of $40.9 billion versus the Street's expectations of $0.74 on revenue of $41.15 billion.
• Continued to divest stores to GameStop Corp. (NYSE: GME) with 507 stores already divested.
• Added over 1.2 million American subscribers to DirecTV after acquisition.
• Over 390 million North American 4G LTE POPs.
• Drexel Hamilton upgraded shares to a Buy rating.

Related Link: AT&T, Time Warner CEOs Discuss Merger, Why Talks With Apple Failed

Verizon Communications

• The company earned adjusted EPS of $1.01 on revenue of $30.94 billion versus analyst expectations of $0.99 on revenue of $31.09 billion.
• CFO admits that 500 million hacking will have material impact during the conference call.
• Verizon Could renegotiate the deal price or could even terminate the deal.
• Telecom firm expects $1 billion shave off from the original agreed price.
• The Wall Street Journal reported Verizon is reviewing the terms of Yahoo, citing drop in revenue and subscribers.

And Others

T-Mobile US Inc (NASDAQ: TMUS):

• Achieved 14th straight quarter of adding more than one million subscribers.
• Reported adjusted EPS of $0.27 on revenue of $9.2 billion compared to the Street estimates of $0.23 on revenues of $9.42 billion.
• Boosted and narrowing adjusted EBITDA outlook from $9.8–$10.1 billion to $10.2–$10.4 billion.

Sprint Corp (NYSE: S):

• On October 18, preliminary results indicated revenue of $8.25 billion and a loss of $142 million.
• The company will announce its full results on October 25.

At Last Check ...

• AT&T was down 1.64 percent at $36.81.
• Sprint was up 5.65 percent at $6.92.
• Time Warner was down 2.51 percent at $87.23.
• T-Mobile was up 8.71 percent at $50.88.
• Verizon was up 0.29 percent at $48.34.
• Yahoo was up 0.71 percent at $42.47.

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