AT&T preferreds fall on disappointing earnings; Energy Transfer’s new preferreds lower

By James McCandless

San Antonio, April 25 – Preferred stock traders reported a day of higher-than-usual activity as earnings statements roll out through the week, though most of the market declined.

AT&T, Inc.’s preferreds slid as the company posted earnings and revenue numbers that did not reach analyst estimates.

Energy Transfer Partners, LP’s new preferreds led the market down and in volume again Wednesday.

Allstate Corp.’s recent issue also declined as the company grapples with a class-action lawsuit.

AT&T’s 5.35% global notes due 2066 saw a precipitous decline on Wednesday with about 466,000 shares trading after the company posted first-quarter earnings of 85 cents per share of common stock, where the average analyst estimate was 88 cents. It also posted a $1 billion loss in revenue.

The preferreds lost 34 cents to close at $24.53.

Meanwhile, Energy Transfer’s newly priced $450 million of series C fixed-to-floating rate cumulative redeemable perpetual preferred units took up much of the volume in the preferred market again as about 465,000 shares were traded.

The deal was priced after market close on April 18 with at 7.375% dividend attached.

The preferreds fell 10 cents to $24.60.

Separately, Allstate’s recent $500 million pricing of $25-par 5.625% series G perpetual preferred shares, with about 422,000 of them changing hands, also trended downward.

The preferreds were down 9 cents to $24.93.

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