Monday – January 27, 2025 Today is special for investors as three major companies; AT&T (NYSE:T), Brown & Brown (NYSE:BRO) and SoFi technology (NASDAQ:SOFI) will report their earnings. And here’s an overview of what to expect from the companies:
AT&T is predicted to grow nearly flat, and its mobility and fiber segments are anticipated to grow marginally, and analysts predict the telecom giant would see its wireless and broadband segments to grow steadily.
Revenue is expected to be $32.29 billion, 0.8% higher over the past year. Meanwhile, EPS is expected to be $0.48 or decline 11.1%. The cost-cutting measures are predicted to not enough to increase profitability.
Tailwinds:
The industry is seeing growth in 5G and fiber internet adoption, the ARPU (average revenue per user) is also higher due to bundling services.
Headwinds:
The competitive pressure in telecommunication industry is growing especially from T-Mobile and Verizon that apply cheaper packages. The 5G infrastructure deployment would require high capital expenditure.
The insurance brokerage is expected to report solid earnings result. Analysts project higher revenue of 8.2% growth in line with higher premium price in property and casualty (P&C) insurance, revenue is expected to be around $1.11 billion and earnings to be at $0.76 per share or 31% higherfrom previous year.
Tailwinds:
Despite economic challenges, insurance industry is resilient with favorable pricing in P&C insurance premium. Continued growth in M&A activity within the insurance brokerage industry also helps Brown & Brown
Headwinds:
Costs would go higher as higher potential of catastrophic events. There’s also competition from larger brokers and online insurance platforms.
Membership and product adoption is expected to continue the massive growth, particularly in personal loans. SoFi is expanding its product offering to cater the growing member base and help increase revenue streams. Lending and financial services will continue to deliver double digit growth in revenue, and margins are expected to improve.
Tailwinds:
Users are growing in number as federal student loan repayments resuming. SoFi has become the top of mind among young generations related to digital financial services that are reachable for them.
Headwinds:
Changing in interest rates affecting SoFi in cost. Competition pressure comes as more financial institution offer digital banking services too. The company is still focused on scaling, so it’s hard for shareholders to hope for profitability.
This article first appeared on GuruFocus.
As we head into another busy earnings week, all eyes are on three major players in the financial and telecommunications sectors: AT&T, BRO, and SoFI. With their earnings reports scheduled for Monday, January 27th, investors are eagerly anticipating what these companies have in store.
AT&T, one of the largest telecommunications companies in the world, is expected to report strong earnings driven by its wireless and entertainment divisions. With the recent rollout of 5G technology and the continued growth of its streaming services, analysts are optimistic about AT&T’s performance in the fourth quarter.
BRO, a leading insurance and financial services provider, is also expected to deliver solid results. With a strong focus on risk management and a diverse portfolio of products, BRO has been able to navigate through challenging market conditions. Investors will be looking for updates on its growth strategies and any potential headwinds in the coming quarters.
SoFI, a fintech company known for its innovative approach to personal finance and investing, has been gaining traction among younger investors. With its recent IPO and expanding product offerings, SoFI is poised for growth in the digital banking space. Analysts will be watching closely for any updates on user growth and profitability.
Overall, market expectations are high for AT&T, BRO, and SoFI as they prepare to release their earnings reports on Monday. Stay tuned for further analysis and insights into these key players in the financial and telecommunications industries.
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