AT&T Misses Q2 Views; Revenue Nearly Flat
AT&T Inc. (NYSE: T) profits fell 7 percent to miss the second-quarter Wall Street consensus while revenue was nearly flat.
Profits fell to $3.55 billion or $0.68 a share, from $3.82 billion or $0.71 a share in the year-ago period. Revenue grew to $32.58 billion from $32.07 billion a year earlier.
Adjusted income fell to $0.62 cents a share from $0.67 cents a year ago, while analysts had forecast adjusted income of 63 cents a share on revenue of $3.22 billion.
Chief Executive Randall Stephenson said a recent move to simple pricing and no-device-subsidy plans resulted in "our best postpaid net adds in nearly five years and our lowest-ever postpaid churn."
The company reiterated a full-year outlook calling for earnings growth "at the low end of the mid-single digit range" and revenue growth of 5 percent.
Analysts expect $2.62 a share on revenue of $133.93 billion, compared with 2013 adjusted income of $3.39 a share on revenue of $128.75 billion.
For the recent period, wireless subscribers totaled 116.6 million, up from 107.9 million last year.
Wireline connections fell to 26.96 million from 30.23 million a year earlier; broadband connections were unchanged at 16.45 million while video connections grew to 5.85 million from 5.26 million last year.
After hours, AT&T traded recently at $35.46 a share, down 1.17 percent.
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