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AT&T Beats All Three; Earnings Revenue and the Competition

AT&T (T) posted earnings after the bell today.  EPS came in at $0.53 verse the Zacks Consensus Estimate of $0.50, and Revenues of $33.2 billion, slightly beating the Zacks Revenue Estimate of $33.06 billion.

One of the major headwinds the street anticipated was the significantly increased promotional efforts by both T-Mobile (TMUS - Snapshot Report), and Sprint (S - Analyst Report); which were attempting to lure current AT&T clients to their services.  Unfortunately for them, AT&T saw an increase in wireless subscriptions quarter over quarter, of 4.8%, and only saw 1.11% of their wireless clients leave the company in the quarter (this was down year over year from 1.19%, and a record quarter for least subscriptions lost).  Moreover, the company increased their new subscription base by over 800,000 customers, exceeding the expectation of just over 600,000 new subscribers.  Finally, the company continued to see forward momentum with their U-verse and Strategic Services segments.  

Over the weekend, there was much news on a potential bid by AT&T to purchase the UK-based Vodafone Group.  But management quickly squashed the rumors by stating that, “AT&T Inc. notes the recent speculation regarding a potential transaction involving Vodafone Group.  At the request of the UK Takeover Panel, AT&T confirms that it does not intend to make an offer for Vodafone.”

Tomorrow morning Zacks will post a more detailed earnings report covering the prepaid division (Leap Wireless acquisition), the 4G network investments, the consumer video division, and the business data services divisions.  

In afterhours trading, AT&T was up just over 1%, but quickly shifted into the red, going down as much as 1.5% on mild volume. 

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