AT&T Inc (NYSE:T, ETR:SOBA) shares are holding steady on Wednesday after first-quarter profits came in higher than Wall Street expected and more wireless phone customers were added.
Adjusted earnings per share reached US$0.55 for the period, beating analysts’ guidance of US$0.53.
Revenues during the three months to March 31 were US$30 billion, representing a slight miss from Wall Street’s forecast of US$30.5 billion.
AT&T’s profit beat comes as chief executive John Stankey continues to streamline the business’s focus towards its core operations as a communications operator.
This strategy was truly showcased when AT&T sold its Warner Media division to Discovery for around US$43 billion.
Now the group has lasered in on its telecom business, offering broadband through both airwaves of fibre.
The plan appears to be producing results, with more than 349,000 new wireless phone subscribers signing up in the first quarter, beating estimates of 303,539.
Stankey said: “Customers are choosing AT&T and staying with us. We achieved a record-low first-quarter postpaid phone churn, grew consumer broadband subscribers for the third consecutive quarter, and expanded margins in Mobility and Consumer Wireline.”