AT&T Yields 3.83% After Q4 EPS Beat and Trades at 9x Earnings
AT&T yielded 3.83% and beat Q4 EPS by 10.64% with 3.6% revenue growth, trading at 9x earnings. The company's stronger earnings growth and deleveraging trajectory position it favorably against Verizon’s 0%–3% EPS guidance and recent network outage concerns.
1. Q4 2024 Results
AT&T exceeded consensus by delivering a 10.64% EPS beat in Q4 2024, underpinned by a 3.6% year-over-year revenue gain. This marks a continuation of margin improvements and stable service demand across wireless and broadband segments.
2. Dividend Yield and Valuation
The company currently offers a 3.83% annual dividend yield and trades at a price-to-earnings ratio of 9x, reflecting a valuation discount to peers. This yield profile appeals to income investors seeking balance between growth and cash returns.
3. Comparison with Verizon and Outlook
AT&T’s earnings growth and ongoing deleveraging contrast with Verizon’s modest 0%–3% EPS guidance and a recent major network outage. As AT&T reduces leverage and sustains revenue momentum, it may capture dividend-focused investors wary of reliability concerns at its rival.