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AT&T stock rose as earnings and revenue for the June quarter beat analyst estimates, while postpaid wireless subscribers beat expectations.
The telecommunications company, which agreed in May / June to merge its WarnerMedia business with Discovery (DISCA) said adjusted second-quarter profit rose 7% to 89 cents from a year earlier. AT&T (T) revenue soared 7.6% to $ 44 billion.
Analysts had forecast AT & T’s profit of 79 cents per share on revenue of $ 42.64 billion. A year earlier, AT&T stock was gaining 83 cents per share on sales of $ 41.1 billion.
Additionally, AT&T said it added 789,000 postpaid wireless phone customers over estimates for a gain of 287,000.
AT&T stock rose 2.2% to 28.50 early in the stock market today.
AT&T stock: WarnerMedia rebounds after pandemic lockdown
Wireless service revenues climbed 5% to $ 14.3 billion, beating estimates of $ 14.1 billion. WarnerMedia’s revenue increased nearly 31% to $ 8.8 billion from the previous year.
AT&T said it added 2.8 million subscribers to HBO and HBO Max streaming videos during the quarter. HBO and HBO Max ended the quarter with 47 million subscribers, up nearly 11 million subscribers from the previous year.
AT&T recently sold its DirecTV video business into a new company under an agreement with private equity firm TPG.
The company has updated its forecast for 2021. Excluding the DirecTV / TPG transaction, AT&T said it expects consolidated revenue growth in the range of 2% to 3% and adjusted EPS. growth in low to medium numbers.
Despite its high dividend, AT&T stock holds a relative strength rating of just 17 out of 99.
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Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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