AT&T Inc. T shares were trading lower by more than 6 percent Wednesday morning after the company reported mixed third-quarter results before the open.
What Happened
AT&T said it earned 90 cents per share in Q3 on revenue of $45.7 billion versus expectations of 94 cents per share and $45.58 billion. Net income for the quarter rose from $3.123 billion in the same quarter a year ago to $4.816 billion, as the company added 4.3 million total wireless net adds and revenue within the WarnerMedia unit rose in all business units.
Why It's Important
AT&T's WarnerMedia unit as part of the Time Warner acquisition performed "very well" in the quarter, Wells Fargo's Jennifer Fritzsche told CNBC Wednesday morning.
While the legacy wireless business was a "pretty bright spot" in the quarter, there are concerns the company has "so much on their plate and many plates spinning in the air," the analyst said. For example, AT&T's exposure to enterprises is under pressure and strategic services revenue was flat, which is "strange" after last year's tax cut, she said.
The decline in AT&T shares shouldn't come as a surprise, although the longer-term picture and strategy after the Time Warner acquisition remain on track, Fritzche said.
Wednesday's earnings report marks the first full quarter with Time Warner under AT&T's umbrella.
What's Next
AT&T also reaffirmed its 2018 full-year EPS guidance at the high end of the $3.50 range.
The stock was trading down 6.43 percent at $30.90 at the time of publication Wednesday.
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