AT&T (T) Tops Q3 EPS by 5c; Guides FY15 EPS Above the Street

AT&T (NYSE: T) reported Q3 EPS of $0.74, $0.05 better than the analyst estimate of $0.69. Revenue for the quarter came in at $39.1 billion versus the consensus estimate of $40.42 billion.

AT&T sees FY2015 EPS of $2.68-$2.74, versus the consensus of $2.61.

“We now have integrated solutions that are unlike any competitor in the market,” said Randall Stephenson, AT&T chairman and CEO. “With our national wireless and video capabilities, as well as our extensive broadband network, we now have assets that make us a unique competitor and the first scaled, fully-integrated U.S. service provider.

“We turned in outstanding financial results in the quarter. Our early integration efforts with DIRECTV are going very well and we’ve just begun to scratch the surface on the video, wireless and broadband cross-selling opportunities,” Stephenson added.

• Third-quarter consolidated revenues of $39.1 billion, up nearly 19% versus the year-earlier period primarily due to the acquisition of DIRECTV
• Including merger-related expenses, Leap network decommissioning and other one-time costs, $0.50 diluted earnings per share in the third quarter compared to $0.60 diluted EPS in the year-ago quarter; excluding these items, diluted EPS was $0.74 versus $0.65 a year ago, up nearly 14% year over year
• Continued adjusted consolidated margin expansion with best-ever service EBITDA margins in wireless operations
• Strong cash flows including $10.8 billion in cash from operations and $5.5 billion in free cash flow
• Business Solutions revenues up 1.2% year over year
• Growth in wireline business data revenues for the fourth consecutive quarter
• Strategic business services revenues of $2.8 billion, up 12.6% and up 15.2% when adjusted for foreign exchange
• 26,000 domestic DIRECTV net adds
• 192,000 IP broadband net adds
• 2.5 million AT&T Mobility domestic wireless net adds with gains in every customer category
• 755,000 branded net adds including solid phone net adds
• 289,000 postpaid and 466,000 prepaid net adds, best prepaid net add quarter in nearly 8 years
• Record 1.6 million connected device net adds including 1 million connected cars
• Nearly 1 million branded (postpaid and prepaid) smartphones added to base
• Continued growth in phone-only postpaid ARPU plus AT&T Next℠ monthly billings up nearly 5% year over year
• Total churn of 1.33%, down year over year; postpaid churn at 1.16%

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

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