AT&T (T) is expected to deliver an EPS of $0.80 for its Q2 2021 earnings announcement two days from now. The share price tests important dynamic support level in the meantime.

AT&T’s stock price consolidates just above support ahead of Q2 2021 earnings. The company has beaten expectations in the last two quarters, but failed to reach new highs during the pandemic.

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The COVID-19 pandemic brought a strong interest in the equity markets from both institutional and retail traders alike. As such, the main indices reached record highs, with the tech sector outperforming.

Not all companies enjoyed the ride, however. AT&T’s stock price, for instance, is nowhere near its record highs. In fact, it is down 8.13% in one year and 3.37% year-to-date.

Investors, however, like AT&T for its dividend policy. This is a company with a thirty-seven year dividend growth rate and a dividend payout ratio of 66.22%.

AT&T Stock Price In Constant Decline

Despite the dividend policy that makes the stock price attractive, AT&T stock price is in a constant decline. One of the reasons is that its industry, integrated telecommunication services, is changing at a fast pace. But as a utility, it does not depend on the business cycle.

Judging by the stock price evolution, the yearly chart shows pressure on massive dynamic support following a series of lower highs. That is a bearish technical analysis development for the AT&T stock price.

What To Expect from AT&T Q2 Earnings?

The market expects an EPS of $0.80 on the quarter, down 4.18% when compared to the same period last year and the revenue estimate is $173.93 billion. AT&T is a company with declining revenue growth and that trades at a P/E Non-GAAP (TTM) ratio below the sector median.

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Most analysts issued buy ratings for the AT&T stock price, while four see it as bearish. The current stock market price of $27.81 is just above the lowest price target given by the twenty-eight analysts that follow AT&T.