AT&T
Shares of AT&T Inc. (NYSE: T) have added about 1.6% over the past 12 months. Rival Verizon is down by more than 26% over the same period, while T-Mobile is up by more than 15%. AT&T completed its divestiture of WarnerMedia just over a year ago, but the move did not begin paying off until more recently. In 2023 to date, AT&T has gained 7.2%, Verizon is down about 0.6% and T-Mobile is up 7.6%. The focus on wireless and fiber networking has turned out to be a good thing for investors who want to see the company’s generous dividend rise further.
Sentiment on the stock remains cautious. Of 27 brokerages covering it, 13 have a Buy or Strong Buy rating, while 12 have Hold ratings. At a share price of around $19.80, the implied upside based on a median price target of $22.00 is 11.1%. At the high price target of $25.00, the upside potential is about 26.3%.
First-quarter revenue is forecast at $30.22 billion, down 3.6% sequentially and 20.7% lower year over year. Adjusted EPS are forecast at $0.59, down 3.3% sequentially and by 23.4% year over year. For the full 2023 fiscal year, EPS is expected to come in at $2.45, down 4.7%, on sales of $122.58 billion, up about 1.5%.
AT&T stock trades at 8.1 times expected 2023 EPS, 7.8 times estimated 2024 earnings of $2.52 and 7.7 times estimated 2025 earnings of $2.58. The stock’s 52-week range is $14.46 to $22.84. AT&T’s current annual dividend is $1.11 (yield of 5.61%). Total shareholder return for the past 12 months was 7.67%.
Taiwan Semiconductor
When Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE: TSM) released March sales data a week ago, it reported a year-over-year increase of 3.6%. But compared to February, sales were down 10.9%, and compared to March 2022, sales had tumbled 15.4%. The share price has dropped by more than 10% over the past 12 months, despite an increase of 18.1% so far in 2023.
Nikkei Asia reported last week that 19 Taiwanese tech manufacturing firms posted a combined sales trap of 18.5% in March, the largest drop in 10 years. Those 19 companies include Apple’s main assembler, Foxconn, and TSMC. Weak demand from PC makers reportedly has cut TSMC’s production line operations by half.
Of 30 analysts covering the firm, 29 have a Buy or Strong Buy rating. At a share price of around $87.80 per American depositary receipt (ADR), the upside potential based on a median price target of $105.50 is 20.2%. At the high price target of $139.25, the upside potential is about 58.6%. Each ADR is equal to five ordinary shares traded in Taiwan.
For TSMC’s first quarter, analysts are looking for revenue of $13.96 billion, down 16.7% sequentially and 1.1% lower year over year. Adjusted earnings per ADR are expected to come in at $0.24, down 34.4% sequentially but 11.1% higher year over year. For the full 2023 fiscal year, earnings per ADR are forecast at $1.07, down 16.4%, on revenue of $74.09 billion, up 0.6%.
TSMC ADRs trade at 15.9 times expected 2023 EPS, 13.0 times estimated 2024 earnings of $1.30 and 11.3 times estimated 2025 earnings of $1.50 per share. The 52-week range is $59.43 to $101.00, and the company pays an annual dividend of $1.79 (yield of 2.03%). Total shareholder return for the past 12 months was negative 9.65%.
Originally published at 24/7 Wall St.
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