AT&T Rising: Q1 Rev Misses, Year Profit Growth View Tops Consensus

Reuters

In the critical wireless segment, AT&T lost 191,000 postpaid phone subscribers, compared with analysts projections of a drop of 245,000, as competition in the quarter ratcheted up with service providers fighting for share with new unlimited-data plans.

AT&T is trying to diversify by buying Time Warner Inc TWX.N in a $85.4 billion deal that would give it control of cable channels like HBO and CNN as well as film studio Warner Bros.

First-quarter net income attributable to AT&T totaled $3.5 billion, or $0.56 per diluted share, compared to $3.8 billion, or $0.61 per diluted share, in the year-ago quarter.

AT&T Inc. (NYSE:T) said it added 2.7 million wireless customers, including 2.1 million in USA, driven by prepaid and connected devices. "But just as important, the strategic moves we've made over the last few months to expand our wireless capacity and fortify our 5G leadership will be felt for years to come", AT&T Chairman and CEO Randall Stephenson said in a statement. In the competitive consumer wireless market, AT&T has been focused on retaining its most profitable customers and shying away from promotional offers to grab market share.

The Dallas-based telecom giant reported Q1 earnings per share (EPS) of $0.74, which was in-line with the Wall Street consensus estimate of $0.74. The company posted first-quarter earnings excluding some items of 74 cents a share, matching analysts' predictions.

Revenues fell 2.8% from past year to $39.4 billion, missing analysts' view for $40.5 billion. In the same period from previous year, AT&T reported $0.72 in EPS and $40.53 in revenue.

AT&T stock is up 48 cents, or 1.2%, at $40.42, in late trading. AT&T also said it had 1.8 million connected devices on the 2G network it shut down in January; those 2G customers were removed from the company's subscriber count at the beginning of the year.

The company is no longer providing consolidated revenue guidance primarily due to the unpredictability of wireless handset sales. The company expects to see EPS growth in the mid-single-digit range, with free cash flow in the $18 billion range.

Share

Related News

  • LVMH to consolidate hold on Dior in multibillion-euro deal

    LVMH to consolidate hold on Dior in multibillion-euro deal

    The bid will take the form of a cash offer of 172 euros per share, plus 0.192 shares in Hermes International, the statement said. Last year, revenues amounted to more than two billion euros and it booked underlying or operating profit of 270 million euros.

    Bills opt not to match Pats' offer for Mike Gillislee

    Just a year ago the Patriots signed Chris Hogan to a three-year, $12 million offer sheet which the Bills declined to match. Gilmore spent his first five seasons in Buffalo but was allowed to enter free agency after the 2016 season.
    Some farewell: Ichiro goes deep in likely last AB in Seattle

    Some farewell: Ichiro goes deep in likely last AB in Seattle

    It's anybody's guess whether Wednesday was Suzuki's last game at Safeco, but he's 43 and playing for a National League club. Chen started the seventh inning with another walk - to Haniger, who worked back from a 0-2 hole.
  • Senate confirms Perdue as secretary of agriculture

    Senate confirms Perdue as secretary of agriculture

    Over the coming year, Purdue's main task will be working with lawmakers on the next five-year farm bill. He is not related or affiliated with the food company Perdue or the poultry producer Perdue Farms.

    Silver Prices Slip Following Round One of French Election

    Many had feared another anti-establishment shock to follow Britain's "Brexit" vote and Donald Trump's election as USA president. Le Pen's father, Jean-Marie, made it to the second round against Jacques Chirac in 2002 and was crushed in the runoff.
    Andre Johnson retires as a Texan

    Andre Johnson retires as a Texan

    Not only was the venue at NRG packed with media, but coaches and players alike showed up for Andre Johnson's big day. He is Houston's all-time leading receiver with 13,597 yards over his 12 seasons with the organization.
  • British PM May's Conservatives on 48 pct support in YouGov poll

    May is hoping to gain a bigger majority in Parliament for her Conservatives, strengthening her negotiating hand with the EU. The country is coming together, but Westminster is not.
    Author and conservationist Kuki Gallmann shot in Kenya

    Author and conservationist Kuki Gallmann shot in Kenya

    The 73 year old environmentalist and conservationist was rushed to Nanyuki County Hospital for emergency treatment. A guard at Gallmann's compound said the herders had tried to enter the property after the attack.

    'A Terrible, Sad Time': 3 Kids, 2 Adults Die in NYC Fire

    New York City officials say five people, including children, are dead and multiple people have been injured in a house fire. Another witness, Tiasha Johnson, told the newspaper that the family's relative screamed for the little ones.
  • Google is asking for your help to spot fake news

    Google is asking for your help to spot fake news

    Google is also changing the signals it uses to directly influence rankings, with an eye towards pushing low-quality content down. Ben Gomes, vice-president of engineering at Google , promises that such results "are less likely to appear" in the future.
    Latest Leaked Pictures Show iPhone With Edge-To-Edge

    Latest Leaked Pictures Show iPhone With Edge-To-Edge

    Most customers who want the new iPhone will simply buy it when it is finally available even if that means early 2018. The new model is expected to omit the home button in favor of a Function Area, reported MacRumors .
    Bernie Sanders calls Hillary Clinton

    Bernie Sanders calls Hillary Clinton "I'm with her" slogan phony

    Just two days before the election, Comey announces that nothing has been found that would merit criminal charges for Clinton. Wouldn't it have been nice to know there was a "feeling of impending doom" inside the Clinton campaign past year ?