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The Markets
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The Markets
by Proactive
Proactive UK has moved.
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Telecoms

AT&T shares higher on earnings beat despite revenue miss

AT&T Inc (NYSE:T, ETR:SOBA) shares moved higher as the telecommunications giant’s third quarter earnings impressed, driven by growth in mobility service and broadband revenue.

Adjusted earnings per share (EPS) of $0.60 beat estimates of $0.59.

Revenue of $30.2 billion, however, was short of the $30.6 billion expected.

Mobility service revenue was up 4% year-over-year at $16.5 billion, while broadband revenue was up 6.4% at $2.8 billion.

During the period, AT&T saw 403,000 postpaid phone net additions with a postpaid phone churn of 0.78%.

“Despite severe weather and a work stoppage in the Southeast, this is our 19th straight quarter of adding more than 200,000 new AT&T Fiber customers,” AT&T CEO John Stankey commented.

“We continue to grow our largest business – mobility – the right way with what we expect will be industry-leading postpaid phone churn for the 13th time in 15 quarters.”

AT&T also reiterated its full-year guidance of wireless service revenue growth of 3% and broadband revenue growth of 7% plus.

Adjusted EPS is still expected to be in the range of $2.15 to $2.25, in line with Street estimates of $2.22.

Shares of AT&T had added 4.1% at about $22 on Wednesday afternoon.

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