31.08 +0.02 (0.06%)
After hours: 6:20PM EDT
|Bid||31.07 x 4000|
|Ask||31.12 x 2200|
|Day's range||30.97 - 32.07|
|52-week range||26.08 - 39.58|
|Beta (5Y monthly)||0.67|
|PE ratio (TTM)||15.77|
|Earnings date||23 Jul 2020|
|Forward dividend & yield||2.08 (6.53%)|
|Ex-dividend date||08 Apr 2020|
|1y target est||33.88|
AT&T Inc. (NYSE: T) continues to actively de-risk its capital structure, extending debt maturities at historically low coupons.
(Bloomberg Opinion) -- The amount of new debt issued this year in the U.S. investment-grade corporate bond market will reach $1 trillion today, by far the fastest pace in history. The implications of that milestone depend on how you look at it.For businesses that had been ravaged by the coronavirus pandemic and the ensuing nationwide lockdowns, access to capital markets was a lifeline to get through the worst of the economic collapse. Sure, Carnival Corp. had to offer interest rates like a junk-rated borrower and Boeing Co. needed to include a so-called coupon step-up provision to offset jitters that it could lose its investment grades. But, in the words of Federal Reserve Chair Jerome Powell, these deals avoided turning “liquidity problems into solvency problems” for brand-name American companies.It’s worth remembering that until the Fed stepped in with extraordinary support for credit markets, averting widespread failures was far from guaranteed. Investors pulled a staggering $35.6 billion and $38 billion from investment-grade funds in the weeks ended March 18 and March 25, respectively. Before 2020, the previous record was $5.1 billion of outflows. I wrote on March 19 that bond markets were veering into a vicious cycle that could get ugly in a hurry — four days later, the Fed announced what would end up becoming a $750 billion backstop for corporate America.Now, the Fed hasn’t actually had to buy any individual bonds yet, a fact that Powell seems proud to share. “We may have to be lending money to those companies, but even better, they can borrow themselves now, and a lot of that has been happening and that’s a really good thing,” he said during May 19 testimony before the Senate Banking Committee.Most people would probably agree with that assessment, at least for the immediate future as the country grapples with restarting the world’s largest economy. But what about the longer-term view?Here, the rampant borrowing paints a more sobering picture. As of late April, 1,287 issuers worldwide rated between AAA and B- by S&P Global Ratings were considered at risk of a potential downgrade, up from 860 in March and 649 in February. That surpasses the previous all-time high set in 2009. “Generally, we expect heavy credit erosion in coming months as issuers, especially those in the lower-rated spectrum come under heavy fire from poor earnings, continued difficulties in managing cost structures, and market volatility creating limited funding opportunities,” said Sudeep Kesh, head of S&P’s credit markets research.That’s bad enough, but doesn’t even strike at the heart of the issue. Last year was supposed to be the beginning of a broad “debt diet” among companies that borrowed huge sums to finance mergers and acquisitions during the longest expansion in U.S. history. That didn’t end up taking place on a wide scale. Even a success story like AT&T Inc., which made headway in trimming its debt stack, still found itself back in the bond market recently, borrowing $12.5 billion on May 21 in what was the biggest deal since Boeing’s $25 billion blockbuster offering.When it comes to companies directly impacted by the coronavirus pandemic or structural changes to their industries, the “big three” of S&P, Moody’s Investors Service and Fitch Ratings haven’t shied away from taking action. Ford Motor Co., Kraft Heinz Co., Macy’s Inc. and Occidental Petroleum Corp. are just a few of the “fallen angels” that lost their investment grades earlier this year.The rating companies haven’t been quite as keen to react to high leverage metrics. I frequently refer back to this feature from Bloomberg News’s Molly Smith and Christopher Cannon, which found that of the 50 biggest corporate acquisitions in the five years through October 2018, more than half of the acquiring companies increased their leverage to a level that would seemingly merit a junk rating but remained investment grade on the assumption that they’d take that leverage down in the coming years. Those expectations seemed ambitious in 2018, when the economy was seemingly invincible. Now, no one can truly expect companies to focus on right-sizing their debt. Corporate leaders are rightfully eager to raise cash to get to the other side of the pandemic, especially with all-in yields not far off from record lows. The vast majority of the $1 trillion in borrowing so far this year was by no means imprudent.In the years ahead, however, the overhang from this issuance spree will inevitably weigh down credit ratings. A company with more debt presents a greater risk of missed interest payments than if it had fewer fixed obligations. Fortunately, for much of the previous expansion, firms had no issue finding investors willing to buy their long-term securities. That practice of rolling over debt and extending maturities might very well be the norm in the months and years ahead, too. Still, if the first five months of 2020 are any indication, investment-grade bondholders will have to get comfortable with even more bloated balance sheets and the prospect of further credit downgrades. For better or worse, with the confidence that the Fed has their back, that seems like a risk investors are willing to take.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brian Chappatta is a Bloomberg Opinion columnist covering debt markets. He previously covered bonds for Bloomberg News. He is also a CFA charterholder.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
While AT&T (T) aims to redefine the streaming landscape with the HBO Max launch, Viasat (VSAT) beats fourth-quarter fiscal 2020 earnings estimate on top-line growth.
Investors looking to add more dividend stocks to their portfolio have found dividend yields right now to be a bit disappointing, reflecting the broad environment. A handful of names still offer strong payouts compared to their stock's current price, and don't impose a huge degree of risk just to plug into that still-solid dividend payout. Telecom giant AT&T (NYSE: T) has seen better days.
Verizon Communications (NYSE: VZ) and AT&T (NYSE: T) have long operated as each other's main competitors. Now, together with T-Mobile, they continue to compete for wireless business as the telecom industry transitions to 5G. The approaches pursued by Verizon and AT&T have taken each of these telecom stocks on different trajectories.
The newest entrant to the streaming wars isn't available in a wide swath of homes across the country.
WarnerMedia's new streaming service HBO Max launched today with a couple of conspicuous absences from the list of supported devices — Max is not yet available on Roku or Amazon's Fire TV. WarnerMedia's vice president of communications Chris Willard told USA Today that "there is no deal in place" to bring the service to those platforms. In a statement sent out this afternoon, Amazon suggested that the disagreement revolves around bringing HBO Max to Prime Video Channels, and around HBO's somewhat confusing distribution strategy.
Many believe Verizon will extend its 4G lead into the new 5G world. Unfortunately, there are factors that suggest Big Red's 5G dream may turn into a nightmare for investors.
The much-publicized HBO Max offering is likely to enable AT&T (T) to gain a foothold in the subscription video on demand market.
HBO Max, the HBO -plus-other-stuff streaming service from WarnerMedia, is finally here. As executives at WarnerMedia and its corporate parent AT&T have made clear, they're hoping to compete with players like Netflix.
AT&T's (NYSE: T) "skinny bundle" live TV streaming service has had a bit of a rough time in recent years. AT&T blamed lapsing promotional subscriptions for the sudden crash, an explanation that turned out to be both true and incomplete: AT&T did indeed lose a lot of promo subscriptions, but part of the problem was that such subscriptions were -- allegedly, at least -- created fraudulently in the first place and assigned to unknowing customers. Now, as first reported by Cord Cutters News, AT&T TV Now is back in action on Roku.
AT&T (T) extends contract to support Linde's day-to-day business operations with revamped and centralized networking infrastructure globally.
(Bloomberg) -- Intelsat SA said it filed a commitment with the Federal Communications Commission to give up airwaves that are to be auctioned for use by mobile broadband, preserving its positioning for a payout from the sale.The action follows a similar commitment earlier Tuesday by fellow satellite communications provider SES SA, the other major holder of rights to the so-called C-band airwaves that are to be sold as the FCC pushes for more frequencies for fast 5G networks.The satellite companies will retain some airwaves to serve current customers. The companies are in line for a share of as much as $9.7 billion for leaving airwaves coveted by wireless providers. The FCC set a May 29 deadline for providers to say whether they will participate.Stephen Spengler, chief executive officer of Intelsat, said in an emailed news release that the company was “committed to advancing – at an accelerated pace – America’s position in the race to 5G.”“We understand what’s required to successfully and quickly transition current users, while maintaining high-quality, uninterrupted broadcast to more than 100 million American homes and businesses,” Spengler added.Bidders at the auction that’s to begin Dec. 8 are expected to include large mobile broadband providers such as AT&T Inc., Verizon Communications Inc. and T-Mobile US Inc.Intelsat, weighed down by almost $15 billion of debt, filed for bankruptcy protection May 14 as part of efforts to raise cash needed to prepare its spectrum for the auction.The FCC’s plan would provide $9.7 billion in compensation to satellite providers if they hit deadlines for leaving the airwaves quickly. Separately, the companies could share in another $3.3 billion to $5.2 billion to reimburse them for costs of making the switch.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Talks on a potential National Basketball Association return heated up over the holiday weekend. ESPN broke news about NBA teams restarting their season this July. To limit travel and exposure to the coronavirus, it appears all games could be played at the ESPN Wide World of Sports Complex near Orlando, Florida.
(Bloomberg Opinion) -- HBO Max launches in just two days, and it has the potential to be one of the best streaming-TV apps out there. The only problem is, consumers don’t seem to have a clue what’s on it. In a poll earlier this month conducted by Morning Consult and the Hollywood Reporter, some 2,000 U.S. adults were asked to choose from a list of TV shows and movie titles which ones they think will be available on HBO Max, a new Netflix-like service being introduced by AT&T Inc.’s WarnerMedia division. The results should worry company executives:As the chart shows, hardly any of the respondents knew that HBO Max would be the exclusive streaming destination for the hit sitcoms “Friends” and “The Big Bang Theory” — highly sought-after content rights that WarnerMedia reportedly spent more than $900 million to secure for the new service. It also wasn’t apparent to the survey takers that DC Comics films and “Sesame Street” would reside on HBO Max.HBO has stood as a force all its own for so long that most people just don’t realize it shares a parent company with Warner Bros. studios and other TV networks, such as Cartoon Network, TBS and Turner Classic Movies. That’s too bad since the same poll showed that the inclusion of such content would make many consumers more likely to subscribe. The most telling response, though: Most of the people polled didn’t even think that “Game of Thrones” — the premier series of HBO’s entire 47-year history — would be accessible through HBO Max, even though it has “HBO” in the name. Consumers can be forgiven for the confusion. Americans’ experience so far with streaming-TV apps is that nothing is intuitive and everything is hard to find. For example, it’s not like ESPN+ is a digital replica of regular ESPN; it’s a different product entirely. And for years “Friends” has been available on Netflix, so young people may only know it as a Netflix show. Without being aware of HBO’s ownership and WarnerMedia’s recent dealmaking, there’s no obvious reason Central Perk would be on the same block as Sesame Street, around the corner from Westeros on the streaming continent of HBO Max. To make matters more confusing, streaming regular HBO (through the HBO Now app) and signing up for HBO Max costs exactly the same — $15 a month.Disney+, which has signed up more than 50 million users since its November launch, doesn’t share HBO Max’s branding conundrum. The only thing survey takers seemed to know for sure is that “The Mandalorian” isn’t part of HBO Max. And that’s probably because Walt Disney Co. has so successfully reestablished “Star Wars” as a Disney property, even though it has only owned the franchise since 2012. The same goes for Pixar and Marvel. It’s for that reason that the biggest hangup of Disney+ — being so narrowly focused on superheroes and kid-friendly programming — can also be a strength. The biggest challenge for other streaming services may be building loyalty when viewers aren’t quite sure what to expect. The move away from appointment viewing on cable TV means that while we’re loyal to particular series and trilogies, we don’t necessarily know (or care) what networks or studios they’re tied to. For WarnerMedia, there’s still certainly a powerful advantage in continuing to use the HBO name for its new product — right away it tells people to expect great content (and hopefully that quality isn’t sacrificed while trying to keep up with the Netflix production factory). At the same time, it makes it difficult and costly to educate consumers on what HBO Max even is. That’s especially true when some of its content is temporarily licensed from its very competitors, such as Disney’s “The Mighty Ducks” and “X-Men: Dark Phoenix,” thanks to distribution deals that predate the streaming wars. (Remember, “X-Men” is Marvel, not the DC Extended Universe.)HBO Max could give other apps a run for their money. But how do you easily explain that it’s just like regular HBO, but it has all this other stuff you’ll probably like as well, yet it doesn’t cost anything extra? Good luck fitting that into a compelling advertisement.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Tara Lachapelle is a Bloomberg Opinion columnist covering the business of entertainment and telecommunications, as well as broader deals. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Panic surrounding the coronavirus disease 2019 (COVID-19) pandemic wound up pushing the benchmark S&P 500 to its fastest bear market in history, and it ultimately cost the index 34% of its value in a 33-calendar-day stretch. While it's common for panic selling of this nature to concern investors, it's also important to realize that every bear market in history has proved to be an excellent opportunity for long-term-minded investors to put their capital to work. Historically speaking, there's probably not a smarter thing you can do with your cash than to buy dividend stocks.
Tutor Perini Corporation (NYSE:TPC) shareholders (or potential shareholders) will be happy to see that the Lead...
As coronavirus restrictions lift, one expert says 'simply opening the doors will not be enough.'
Three that I own and plan to buy more of are AT&T (NYSE: T), STORE Capital (NYSE: STOR), and Chevron (NYSE: CVX). If ever there was an imperfect telecommunications stock, it would be AT&T. In fact, some flaws could be considered major grievances. Shifting away from its bread-and-butter mobile network service, the company racked up massive debt purchasing DirecTV in 2015 and Time Warner in 2018, leaving it with a heaping $164 billion in long-term liabilities at the end of its first quarter of 2020.
Venezuela's Supreme Court on Friday ordered pay television service DirecTV to restore services in the South American country, after owner AT&T Inc said earlier this week it was shutting access due to U.S. sanctions. DirecTV was the country's most popular television service, providing a range of foreign channels as alternatives to the country's beleaguered local television industry that has been battered by a hyperinflationary economic crisis. U.S. sanctions meant to force President Nicolas Maduro from office prohibit companies from contracting with state agencies, but local Venezuelan laws require subscription services to carry channels run by the government.
AT&T (NYSE: T) is set to launch HBO Max next week, and it's lined up a lot of distribution partners. It announced partnerships with a host of pay-TV providers and connected-TV platforms, but there are a three big omissions from its current lineup: Comcast (NASDAQ: CMCSA), Amazon (NASDAQ: AMZN), and Roku (NASDAQ: ROKU). It's not a huge surprise AT&T has been unable to strike deals with the largest pay-TV provider in the country, and pushback from Amazon and Roku was to be expected.
Netflix shares are overvalued at current levels, one Wall Street analyst argues.
AT&T (T) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.
(Bloomberg) -- AT&T Inc. brought a new bond sale, taking advantage of a global rally in credit to refinance outstanding debt.The wireless carrier is issuing $12.5 billion of unsecured bonds in five parts, according to people with knowledge of the matter. The longest part of the offering, a 40-year security, will yield 250 basis points over Treasuries, down from initial talk of around 280 basis points, the people said, asking not to be identified as the details are private.The bond sale comes as companies have been borrowing at a rampant pace to shore up liquidity through the pandemic, while stronger ones like AT&T have used the opportunity to refinance debt. U.S. investment-grade spreads rallied below 200 basis points this week for the first time since shutdowns started two months ago, as investors continue to hunt for yields of high-quality borrowers.The proceeds will be used to refinance bonds and also a $5.5 billion term loan that AT&T took out in April, the people said. The company raised the loan for short-term liquidity with a group of banks following a spike in commercial-paper costs.AT&T, the largest non-financial corporate borrower in the world, has been chipping away at its now $164 billion debt load, down from a peak of nearly $200 billion within the past few years. Most of that stems from borrowings to finance its acquisitions of Time Warner Inc. and DirecTV.Bank of America Corp., Goldman Sachs Group Inc., Mizuho Financial Group Inc., Royal Bank of Canada and Wells Fargo & Co. managed the bond sale, the people said.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.