AT&T (T) Tops Q1 EPS by 1c

AT&T (NYSE: T) reported Q1 EPS of $0.63, $0.01 better than the analyst estimate of $0.62. Revenue for the quarter came in at $32.6 billion versus the consensus estimate of $32.84 billion.

“The first quarter was a significant step in a transformative year for AT&T” said Randall Stephenson, AT&T chairman and CEO. “The repositioning of our wireless customer base to no-device-subsidy plans drove industry-leading postpaid churn. IP technologies continue to transform our wireline operations, expand our broadband base and drive strong demand for strategic business services. Plus, we established a good foothold in the Mexican wireless market with our acquisition of Iusacell and we are on track to close our acquisition of Nextel’s Mexico operations shortly. This, along with our expectation that we’ll gain final approval of the DIRECTV deal in the second quarter, adds to our confidence that we’re on track to be a very different company uniquely positioned for growth.”

Expected Cost Synergies from DIRECTV Transaction Increased Significantly to $2.5 billion

• $0.61 diluted earnings per share in the first quarter compared to $0.70 diluted EPS in the year-ago quarter. Excluding significant items, EPS was $0.63 versus $0.71 a year ago. The year-earlier quarter includes about 3 cents of EPS from divested assets
• First-quarter consolidated revenues of $32.6 billion, up 0.3 percent versus the year-earlier period and up 1.2 percent when adjusting for the sale of Connecticut wireline properties; wireline business and total revenue growth impacted by foreign exchange
• Strategic business services revenues of $2.6 billion up 15.4 percent when adjusted for the Connecticut wireline sale; now 32 percent of total wireline business revenues
• Wireless operating income margin of 24.5 percent for the first quarter; adjusted EBITDA service margin of 45.3 percent
• Full-year standalone guidance on track

Strong Wireless Subscriber Gains and Continued Wireline Consumer Revenue Growth

• About 1.2 million branded smartphones added to base, including 700,000 prepaid
• 1.2 million total wireless net adds, including 441,000 postpaid and 684,000 connected cars
• AT&T’s best-ever first-quarter wireless postpaid churn of 1.02 percent
• Wireline consumer revenues of $5.7 billion with adjusted revenues up 2.1 percent versus the year-earlier period
• Stabilizing margins

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

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