At & t company 2019’s financial forecast and recommendations

Document Type:Case Study

Subject Area:Finance

Document 1

Through Market Leadership accomplished by large scale operations, AT & T brings forth a lot of bargaining power and economies of scale. Its substantial base of customers and robust brand recognition are evidenced by the high penetration of its developed products and essential cross-selling opportunities (Fried et al. The telecommunication company provides mobile telephony services and is renowned for this. AT & T is a fixed telephony and cable services; local and long distances services. It offers satellite television, internet email, and Broadband internet access. Model of Financial Revenue Evolution Figure 1: Income Statement Evolution Over the years, AT & T has experienced growth in its fields. In 2013 for instance, AT & T, had sales of 128,752M USD, Operating Profit of 23,167 M USD, Net Income of 18,249 M USD which had a net margin of 14.

Sign up to view the full document!

17% and operating margin of 17. In 2014, AT & T income statements also rose up, that is, Sales Were 132,447 M USD, operating Income 22,683 M USD, Net Income 6224 M USD, with a net margin of 4. 70% and Operating Margin of 17. 01 USD and a cash flow per share of 6. 46 USD. In 2014, the book value per share rose at 16. 65 USD while the cash flow per share dropped to 6. 00 USD as shown in the figure above. 8% respectively. The operating leverage is also expected to rise from 1. 46x to 1. 21x. The yield also will rise from 6. Figure 4: Lead Forecast for AT & T Through the analysis of the actual data, the lead market for AT & T is expected to shoot up with a factor of 10^2. That is if in the chart it's written 20,000.

Sign up to view the full document!

The forecast is 2,000,000 people by the year 2020. AT& T SWOT Analysis. In summary, the AT & T company has solid fundamentals for short-term investment strategy. Lastly, AT & T company has a broader business portfolio; it caters to government agencies, individuals, businesses. Its ability to diversify enables the company to evade or reduce their dependency to a particular segment, and also allows the company to reduce risk. ii. Weakness AT & T company estimates by other financial analysts place the company among the companies with the lowest growth prospects. The company is also in a hindered financial situation with two EBITDA levels and with significant debts. DIRECTV is one of the acquired pay television services. Through this acquisition, AT & T was able to triple the Tv customer base and the company's cables.

Sign up to view the full document!

From $10 to earn access

Only on Studyloop

Original template

Downloadable