UPS AND DOWNS: AT&T's revenue rose 1.6 percent from a year ago to $32.1 billion in the second quarter, while net income fell 2.1 percent to $3.8 billion, or 71 cents per share.
STREET EXPECTATIONS: Excluding a gain of 4 cents per share on the sale of stock in Mexican cellphone company America Movil, AT&T's earnings were 67 cents per share, 1 cent under analyst expectations as polled by FactSet.
THE BACKGROUND: The phone company added a large number of tablets to its wireless network and got many customers to upgrade their phones, resulting in higher revenues. But it sells phones at a loss to contract-signing customers, holding back results. Costs also rose on the wireline side, where AT&T is boosting broadband speeds.