AT&T Inc. (T - Free Report) just released its third quarter fiscal 2017 financial results, posting adjusted earnings of 74 cents per share and revenues of $39.7 billion. Currently, T is a Zacks Rank #3 (Hold), and is down 1.66% to $34.28 per share in trading shortly after its earnings report was released.
Missed earnings estimates. The company posted adjusted earnings of 74 cents per share, just missing the Zacks Consensus Estimate of 75 cents per share. Net income attributable to AT&T was $3 billion for the quarter.
Missed revenue estimates. The company saw consolidated revenue figures of $39.7 billion, lagging a bit behind our consensus estimate of $40.27 billion.
The company reported 3 million total wireless net adds for the quarter, 2.3 million in the U.S. and nearly 700,000 in Mexico. U.S. net adds were driven by connected devices, prepaid and postpaid.
AT&T had best-ever Q3 postpaid phone churn of 0.84%, which shows the success of its video and wireless bundling strategy.
The company also expanded its operating income margin of 30.5%, with best-ever EBITDA margins of 42% and wireless service margin of 50.4%.
“We look forward to closing our acquisition of Time Warner and bringing together premium content with world-class distribution to deliver a better entertainment experience for consumers and more effective targeted advertising,” said Randall Stephenson, AT&T Inc. chairman and CEO. “We’re also on track to have one of the largest high-speed internet networks in the U.S., reaching more than 50 million customer locations with competitive high speeds. This expansion will make our bundled video, mobile and broadband services even more compelling.”
AT&T maintains its full-year guidance.
AT&T is a premier telecom company. Its subsidiaries and affiliates, AT&T operating companies, are the providers of AT&T services in the U.S. and around the world. Among their offerings are the world's most advanced IP-based business communications services, the nation's fastest 3G network and the best wireless coverage worldwide, and the nation's leading high-speed Internet access and voice services.
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