AT&T Inc (NYSE:T) announced its second-quarter earnings, beating analyst estimates on earnings but falling short on revenue.
The telecom company reported earnings of US$0.81 per share on revenue of US$38.99bn compared with US$0.63 on revenue of US$39.34bn in the previous year’s second quarter.
The Texas-based company reported adjusted earnings of US$0.91, surpassing Wall Street estimates of US$0.85 EPS. Its revenue fell below expectations of US$39.39bn.
For the year ahead, the company raised its adjusted EPS to the high-end of its US$3.50 range. Analysts were expecting US$3.40 per share.
Its free cash flow was also raised to the high end of the US$21bn range.
READ: Verizon sees strong subscriber growth in its second-quarter results
Rival Verizon Communications Inc (NYSE:VZ) topped estimates in its second quarter, seeing strong subscriber growth.
AT&T also saw strong subscriber gains, adding 73,000 postpaid subscribers in the US.
Shares were down slightly to US$31.45 in Tuesday after-hours trading.
Merger mania
A district court approved the tech giant’s US$85.4bn acquisition of Time Warner last month.
The company’s consolidated results include 16 days of Time Warner’s results for the second quarter.
The Justice Department has since stepped in, arguing that the merger would be detrimental to competition and lead to price hikes.
AT&T also agreed to acquire AppNexus, a television advertising company.