AT&T Shares Skid as Revenue Disappoints

CNBC

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An At&T logo is seen atop a store in Beverly Hills, California. REUTERS/Danny Moloshok

AT&T (NYSE:T) reported a decline in revenue that was below market expectations, but added more wireless subscribers than expected, driven by sales of tablet computers with cellular connections.

The No. 2 U.S. mobile service added 296,000 subscribers in the quarter, above expectations of just over 195,000, according to six analysts contacted by Reuters.

After the earnings announcement, the company's shares slid in extended-hours trading. (Click here for the latest after-hours quotes: NYSE:T)

The mobile-service provider posted first-quarter earnings excluding items of 64 cents a share, up from 60 cents a share in the year-earlier period.

Revenue decreased to $31.36 billion from $31.82 billion a year ago.

Analysts had expected AT&T to report earnings excluding items of 64 cents a share on $31.75 billion in revenue, according to a consensus estimate from Thomson Reuters.

The company's wireless network continued to show strength in the quarter, said AT&T's CEO Randall Stephenson. "And that helped drive our best ever first quarter for smartphone sales, improved wireless churn and strong growth in mobile data revenues," he said.


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