On Tuesday, AT&T (T) posted quarterly earnings and revenue that beat analysts’ forecasts, but T stock dropped almost 4% in Wednesday trading as investors worried over lower-than-expected subscriber growth.
T stock sank after the nation’s second largest wireless carrier said it added just 566,000 net subscribers during the fourth quarter. Wall Street had forecast a net gain of 636,000 subscribers for the period. That was less than rival wireless carriers Verizon’s (VZ) Verizon Wireless and T-Mobile (TMUS), which added 1.6 million and 869,000 new subscribers, respectively, during the quarter, Reuters noted.
AT&T said that during the quarter it generated a profit of $6.9 billion, compared to a loss in the year-ago quarter. Adjusted EPS came in at 53 cents. Analysts had forecast earnings of 50 cents per share of T stock.
Quarterly revenue also topped estimates, rising to $33.16 billion. That narrowly beat the $33.06 billion in revenue that analysts had anticipated.
Earlier this month, AT&T offered T-Mobile subscribers up to $450 in incentives to ditch T-Mobile in favor of AT&T.
T stock closed at $33.70 a share on Tuesday. T stock has slipped more than 2% over the past year.