AT&T Q2 Profit Tops Estimates

AT&T Inc.

reported stronger-than-expected earnings for its second quarter on Thursday. The Dallas, Texas-based company posted quarterly net income of $3.04 billion, or $0.58 per share, down from $3.55 billion, or $0.68 per share, in the year-earlier period. Excluding items, the company's earnings rose to $0.69 per share from $0.62 per share. Its consolidated revenue rose 1.4 percent year-over-year to $33.0 billion. However, analysts were expecting earnings of $0.63 per share on revenue of $33.04 billion. The average estimate among 37 Estimize users was for earnings of $0.63 per share and revenue of $33.02 billion. The company added 2.1 million new wireless subscribers during the quarter, including 410,000 postpaid and 331,000 prepaid. Its strategic business services revenue climbed 13 percent year-over-year to $2.7 billion. Its operating expenses increased to $27.3 billion from $27.0 billion, while operating income rose to $5.7 billion in the latest quarter from $5.6 billion in the year-ago quarter. Cash from operating activities totaled $9.2 billion in the quarter. "These results reaffirm our transformation strategy," said Randall Stephenson, AT&T chairman and CEO. "We grew revenues, expanded margins and delivered double-digit adjusted EPS and cash flow growth. We added more than 2 million new wireless subscribers as the repositioning of our smartphone base nears completion. We also began expanding high-quality, high-speed wireless service to Mexican consumers and businesses. AT&T shares gained 0.56 percent to $34.10 in the after-hours trading session.