Summary
AT&T got washed out following the slump to yearly lows at $30.
Analyst estimates for 2019 don't match simple math following the close of the Time Warner merger.
The stock acted the same way following the DirecTV merger right prior to a quick 25% gain.
Following the approved merger with Time Warner, AT&T (T) saw the stock get washed out at $30. The stock traded above $40 back in 2017 following the excitement surrounding the Time Warner deal, but now the analyst community is failing to give the wireless and media giant credit for an EPS boost from the deal. AT&T appears washed out in the low $30s.
EPS Estimates Too Low
My previous research easily highlighted how AT&T had a strong path to an EPS of $3.80 next year. The purchase of Time Warner partially via debt and prior to tax reform provided for a huge boost to earnings in the process.
