T Stock – AT&T Shares Fall on Lousy Subscriber Growth

by Christopher Freeburn | January 29, 2014 9:43 am

T Stock – AT&T Shares Fall on Lousy Subscriber Growth

A T and T ATT 9 300x199 T Stock   AT&T Shares Fall on Lousy Subscriber Growth[1]On Tuesday, AT&T (T[2]) 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[3].

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[4]) Verizon Wireless and T-Mobile (TMUS[5]), 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[6] 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.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2011/05/A-T-and-T-ATT-9.jpg
  2. T: http://studio-5.financialcontent.com/investplace/quote?Symbol=T
  3. worried over lower-than-expected subscriber growth: http://www.reuters.com/article/2014/01/28/us-att-earnings-idUSBREA0R1SI20140128
  4. VZ: http://studio-5.financialcontent.com/investplace/quote?Symbol=VZ
  5. TMUS: http://studio-5.financialcontent.com/investplace/quote?Symbol=TMUS
  6. T-Mobile subscribers up to $450 in incentives: http://investorplace.com/2014/01/att-t-mobile-t-stock-tmus-stock/#.UukSdHlhOf0

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