T Does well
ATT had a solid hit
Earnings rose 74%, beating expectations by 10%.
The quality of earnings is important to note. A great deal comes from post merger cost cutting benefits. Another significant portion is tied to Cingular.
The key concern amidst the consolidation is revenue growth. Revenues are flat in the traditional voice and data markets. Wireless is key - Cingular and Verizon Wireless and stealing Sprint marketshare. (I've mentioned before my thinking that Sprint is a takeover candidate by cable companies, because they lack a wireless solution.)
ATT has a video solution that they are rolling out, but the expenditure is both small and late. It will succeed in competing with cable channels once it is running, but that is 6 months away (for anything meaningful).
We are up over 10% for less than 2 months, and that's not bad. If we have to leave, then we leave.
Earnings rose 74%, beating expectations by 10%.
The quality of earnings is important to note. A great deal comes from post merger cost cutting benefits. Another significant portion is tied to Cingular.
The key concern amidst the consolidation is revenue growth. Revenues are flat in the traditional voice and data markets. Wireless is key - Cingular and Verizon Wireless and stealing Sprint marketshare. (I've mentioned before my thinking that Sprint is a takeover candidate by cable companies, because they lack a wireless solution.)
ATT has a video solution that they are rolling out, but the expenditure is both small and late. It will succeed in competing with cable channels once it is running, but that is 6 months away (for anything meaningful).
We are up over 10% for less than 2 months, and that's not bad. If we have to leave, then we leave.
posted by Andrew at
12:32 AM
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What do you think of GLW ?
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