AT&T (T) is likely to report Q1 revenue slightly below estimates, with EBITDA clocking in ahead of forecasts, RBC Capital Markets said in a note emailed Wednesday.
The firm expects Q1 revenue of $30.2 billion and EBITDA of $11.4 billion. The estimates compare to consensus forecasts of $30.4 billion and $11.3 billion, respectively.
Segment-wise, the firm expects 3% revenue growth in the wireless service business, below the consensus of 3.5%. The lower estimate reflects higher churn in January due to roll-off of three-year contracts.
"While this was originally anticipated in December, the impact was more pronounced in January instead," RBC said.
Meanwhile, in the broadband business, the firm expects 7.1% revenue growth year over year. "Our observations suggest that during Q1 the company remained focused on cross-selling initiatives and aggressive marketing in footprints with newly deployed fiber," RBC wrote.
The firm raised its price target to $28 from $27, with an outperform rating.
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