AT&T Inc. (NYSE:T) reported first-quarter income attributable to the company of $3.5 billion, or $0.56 per share, compared to $3.8 billion, or $0.61 per share, in the year-ago quarter. When adjusted, earnings per share was $0.74, compared to $0.72 in a year-ago.
The company posted revenues of $39.4 billion, missing analysts’ expectations. Revenue in the three-month period ended in March fell 3% year-over-year due to record-low equipment sales in wireless.
Analysts were expecting $40.5 billion in revenue and $0.74 EPS.
Operating income was $6.9 billion and operating income margin was 17.4%, compared to $7.1 billion and 17.6% a year ago, respectively.
AT&T Inc. (NYSE:T) said it added 2.7 million wireless customers, including 2.1 million in U.S., driven by prepaid and connected devices.
The company said that its churn rate – the percentage of subscribers who leave the service within a given time period – in postpaid phone was the best-ever for the first quarter, at 0.90%. Wireless postpaid churn was 1.12%, including pressure from tablets.
“In a very competitive quarter, we continued to execute on our goals of driving efficiencies in our business while growing adjusted earnings per share. But just as important, the strategic moves we’ve made over the last few months to expand our wireless capacity and fortify our 5G leadership will be felt for years to come,” AT&T Chairman and CEO Randall Stephenson said in a statement.
“Our planned acquisitions of Fiber Tower and Straight Path will add valuable millimeter wave spectrum assets to our 5G tool kit as we lead the way to the next generation of wireless technology,” Stephenson added.
Meanwhile, AT&T said it updated its 2017 guidance. The company expects adjusted EPS growth in the mid-single digit range, adjusted operating margin expansion, capital expenditures in the $22 billion range, and free cash flow in the $18 billion range.
AT&T said it is “no longer providing consolidated revenue guidance primarily due to the unpredictability of wireless handset sales.”
Shares of AT&T Inc. (NYSE:T) were down 0.20% in after-hours trading. The stock is down over 6% for the year.