AT&T (NYSE:T) winning stocks in trading. The company’s stock price was up 2.3% as of 2:40 p.m. ET, according to data from S&P global market information.
Verizon released its fourth-quarter earnings results before the market opened this morning, and the better-than-expected performance also has investors more bullish on AT&T stock. Although the two companies are rivals in the intensely competitive telecom sector, Wall Street’s reaction points to expectations of positive trends that could benefit multiple players in the space.
In the fourth quarter, Verizon reported non-GAAP (adjusted) earnings per share of $1.08 on revenue of $35.1 billion. While profits for the period were in line with Wall Street targets, revenue exceeded expectations by approximately $550 million. Verizon also saw strong expansion in Internet services for its wireless telephony and broadband services businesses. Given that these categories are also AT&T’s key growth drivers, it’s possible that overall conditions for the industry will improve.
AT&T is expected to report its own fourth-quarter results before the stock market opens tomorrow. Should Investors Buy This High-Yield Dividend Stock?
AT&T stock is still a smart buy
While Verizon’s strong fourth-quarter results don’t necessarily mean AT&T will see similar momentum, there are some positive signs in the report.
Notably, Verizon ended 2023 with capital expenditures of $18.8 billion – down from $23.1 billion the year before. For this year, AT&T’s rival forecast that capital expenditures would fall to between $17 billion and $17.5 billion. It appears that the heavy investment cycle for this corner of the telecom sector is winding down,…