AT&T Tops Q2 Profit Forecast, Misses on Revenue

by Christopher Freeburn | July 24, 2012 9:23 am

AT&T Tops Q2 Profit Forecast, Misses on Revenue

AT&T (NYSE:T[1]) posted second-quarter earnings[2] of $3.90 billion, up from $3.59 billion during the same time last year.

During the quarter, revenue increased slightly to $31.6 billion, up from $31.5 billion last year.

EPS was 66 cents a share, compared to 60 cents in the second quarter of 2011.

Wall Street had been looking for earnings of 63 cents a share on revenue of $31.7 billion, Reuters noted.

Shares of AT&T moved up fractionally in pre-market trading on Tuesday.

Margins at its wireless service business came in at 45%, beating an average analyst estimate of 42.5%.

The company noted that it signed 320,000 new customers to its contract wireless services during the quarter. That exceeded the 233,000 new contract customers predicted by analysts.

AT&T also recorded a $750 million cash gain resulting from the sale of a 53% stake in its directory business to Cerberus Capital Management.

Last week, telecommunications rival Verizon (NYSE:VZ[3]) posted second-quarter earnings in line with analysts’ expectations[4], but announced that it had added 888,000 new wireless subscribers, easily topping analysts’ forecasts.

Endnotes:
  1. T: http://studio-5.financialcontent.com/investplace/quote?Symbol=T
  2. posted second-quarter earnings: http://www.reuters.com/article/2012/07/24/att-earnings-idUSL2E8IO1V020120724
  3. VZ: http://studio-5.financialcontent.com/investplace/quote?Symbol=VZ
  4. second-quarter earnings in line with analysts’ expectations: http://investorplace.com/2012/07/verizon-profit-meets-forecasts-wireless-shines/

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