T
The stock in my opinion was hit absurdly. It beat earnings slightly and reiterated guidance. Added customers. Really nothing to negative to see, not in context of this absurd decline. In fact We know T cash flow is heavily weighted to the back half yet everyone was saying they won't hit the 16 Billion of FCF numbers. We heard the same thing before q3 last year. Newsflash, alot of there spending happens now affect the cash flow number one-two quarters from now. So if they can't figure out what they are spending now, and have spent a month ago. than I will be proven wrong.
But they reitratated $2.35-2.45, which is just 7 times earnings. I fully expect them to hit that number and be towards the higher end with an outside chance of beating those numbers slightly.
They reitrated 16 billion (At Least) (I believe they will slighty exceed 16 billion) in FCF, what analyst don't understand is this company is highly seasonal (Which is hard to believe they haven't figured this out), T like all companies in the sector offer deals on phones in q4, they pay for that in q1, hence it impact FCF in q1. Which is why Q1 is always weak FCF numbers and very seasonally weak in that quarter. Last year about 72%+ of FCF occured in q3 and q4, and 45% of FCF hit in q4 alone. They are seasonal in FCF terms, yet the analysts get upset about FCF, and everyone acts like the end is near. I believe they will exceed 16 Billion in FCF with anoth jump in FCF next year as we are hitting peak spending this year and last, and it should come down starting in 24 and beyond on 5g. I Think T is very attractive here, to get about a 6.3% Yield on 7 times earnings that is actually growing customers, and FCF is growing in 2023 from 2022, and should grow more in 24, as we are at peak spending on 5G right now. All is just my opinion, and I could always be wrong though.
