AT&T (T) is set to report Q4 results after the bell today (4:30pm ET). Cap IQ Consensus estimates Q4 EPS of $0.66 (vs. $0.55 in 4Q15), w/revs of $42.18 bln ( ~flat y/y). 

On the Q4 Earnings call the main focus for investors will be an update on AT&T's merger with Time Warner (TWX) and whether or not the Trump administration will support the deal. Following the announcement of the AT&T Time Warner Merger on October 22nd, Donald Trump stated that he would not approve the deal on the campaign trail. 

On January 11th, ahead of President Elect Trump's meeting with the CEO of AT&T, Trump tweeted ".@CNN is in a total meltdown with their FAKE NEWS because their ratings are tanking since election and their credibility will soon be gone!" 

Investors will be looking for guidance for FY17, yesterday Verizon (VZ) fell on disappointing outlook due to increased competition. Consensus calls for AT&T's FY17 EPS to increase by 4.2% to $2.96 with revenues increasing by 1.6% to $166.7 bln. 


Technically, T has corrected off its strong December rally highs near $43. It's above its 200-day and 50-day moving averages.

In response to positive earnings, look for current resistance around the $42-bearish gap zone to be closed. If the response is negative, then recent support around the $40-level will be tested.

T Support and Resistance