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AT&T (T) Tops Q1 EPS Views as More Users Convert to Smartphones; iPhone Sales Lighten

April 24, 2012 8:05 AM EDT Send to a Friend
AT&T (NYSE: T) shares are being bid higher Tuesday morning following the telecom giant's first-quarter report, which showed mixed results and relatively light shipments of one key device.

Revenue for AT&T rose 1.8 percent from $31.25 billion in the same period last year to $31.82 billion. Net income popped 5.2 percent from $3.41 billion in the first quarter of last year to $3.58 billion, or 60 cents per diluted share.

Analysts on the Street were looking for EPS of 57 cents on revs of $31.85 billion.

Net wireless subs rose 726,000 to 103.9 million. Postpaid adds were 187,000 and prepaid were 125,000.

Total smartphone sales were 5.5 million units. Total smartphone subs rose from 46.2 percent last year to 59.3 percent. Wireless ARPU rose 15.3 percent to $26.92. AT&T reportedly activated 4.3 million Apple (Nasdaq: AAPL) iPhones in the quarter, down 43 percent from the holiday season. Notably, peer Verizon (NYSE: VZ) saw just a 31 percent quarter-over-quarter dip in iPhone activations.

Wireline revs fell 0.8 percent to $14.9 billion as operating margins widened from 11.8 percent to 12.2 percent.

U-Verse revs rose 1 percent to $5.4 billion. Total U-Verse subs rose above the 6 million mark.

AT&T shares are indicated 2 percent higher early Tuesday.




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