AT&T (T) Reports In-Line Q4 EPS

AT&T (NYSE: T) reported Q4 EPS of $0.55, in-line with the analyst estimate of $0.55. Revenue for the quarter came in at $34.4 billion versus the consensus estimate of $34.2 billion.

trong Wireless Revenue and Subscriber Growth

• Wireless revenues up 7.7 percent versus the year-ago quarter
• Wireless data billings up 18 percent versus the year-earlier quarter
• 1.9 million total net adds with 5.6 million total net adds in 2014
• Postpaid net adds of 854,000; nearly 3.3 million postpaid net adds in 2014
• Wireless operating income margin of 16.3 percent for the fourth quarter and 23.1 percent for the full year; adjusted EBITDA service margin of 36.7 percent with a record full-year adjusted margin of 42.0 percent
• More than 1 million new postpaid smartphones added in the fourth quarter and nearly 5 million in 2014
• More than 52 million connections on AT&T Mobile Share®, representing nearly 70 percent of postpaid subscribers; half of Mobile Share accounts are on data plans of 10 gigabytes or higher
• Record 10.1 million postpaid smartphone gross adds and upgrades in fourth quarter, 29.1 million in 2014
• 5.9 million, or 58 percent, of all postpaid smartphone gross adds and upgrades on AT&T NextSM ; 15 million postpaid smartphones on Next plans

U-verse and Strategic Business Services Drives Adjusted Wireline Revenue Growth

• Reported wireline revenues of $14.6 billion with adjusted revenues up 0.4 percent
• Strategic business services revenues of $2.6 billion up 14.3 percent when adjusted for the Connecticut wireline sale
• Reported wireline consumer revenues of $5.6 billion with adjusted revenues up 2.4 percent versus the year-earlier period
• Total U-verse® revenues, including business, of $3.9 billion with adjusted revenues up 21.9 percent year over year; U-verse a more than $15 billion annualized revenue stream
  • 405,000 U-verse high speed Internet subscriber net adds; more than 12 million total U-verse high speed Internet subscribers
  • 73,000 U-verse TV subscribers added

On a business-as-usual basis without the impact of DIRECTV and the Mexico wireless properties, AT&T expects to deliver in 2015:

• Continued consolidated revenue growth
• Adjusted EPS growth in the low single-digit range
• Expanding margins — consolidated, wireless and wireline
• Improving free cash flow and dividend coverage

As previously announced, with the completion of many Project VIP initiatives, AT&T expects capital expenditures to be in the $18 billion range.

For earnings history and earnings-related data on AT&T (T) click here.

You May Also Be Interested In

• Midday movers: Meta, IBM, Caterpillar fall; Chipotle rises
• First BanCorp (FBP) PT Raised to $21 at Keefe, Bruyette & Woods
• Inter Parfums (IPAR) PT Lowered to $172 at Piper Sandler