Charismatic Megafauna said:
Farmer
Thoughts on T earnings?
Beat, down 7%
Ouch
*T is fine.
*Projection of Free Cash Flow moving downward from $16 billion to $14 billion is fine. This QTR FCF was $1.4 vs analysts expectation of $4.7. So, FCF did not cover dividend this Q2.
*On track to deliver $4 billion of restructuring savings of $6 billion promised.
*Investing in core business
*Nothing new here from me......CEO John Stankey needs to stay off TV - OR - buy a Corporate Communications Staff to help Stankey message (what they have doesn't work or Stankey is not listening) - OR - face the music, fire Stankey because he is not liked and I'm not sure he can recover, BUT it's Institutional shareholder votes that is keeping this corporate leadership team in place. Fire the BoD too. There's an Aggie on it, but she needs to go with the rest. T is a great company and it's led by very poor leadership. It's sad. This leadership cannot sink this company. Stankey has a tarnished label.
*T is $415MM in assets against $289MM in liabilities.
*If someone tells you that T is going to cut the dividend again,...have a good laugh. T Leadership states they are focused on core biz. As long as they do not vary from that focus, it's all good.
*T noted customers are beginning to slow pay. T noted, they will get paid. True statement. It's good to get paid in economic times like these.
*This is a long term hold for me.