AT&T Inc. (NYSE: T) released second quarter financial results after markets closed Tuesday. The company said that it had $0.91 in earnings per share (EPS) on $39 billion in revenue, compared with consensus estimates that called for $0.85 in EPS and $39.39 billion in revenue. The same period from last year had $0.79 in EPS and $39.84 billion in revenue.
During the quarter, AT&T had 3.8 million total wireless net adds, of which 3.1 million were added in the U.S., driven by connected devices and prepaid subscribers and 756,000 were in Mexico. There was a total of 219,000 video net adds combined from the U.S. and Latin America.
In terms of U.S. wireless results, the company had 46,000 postpaid phone net adds, and continued prepaid growth totaling 356,000 phone net adds. There were nearly 400,000 smartphones added to the base.
There were also 342,000 DIRECTV NOW net adds to reach more than 1.8 million subscribers.
Looking ahead to the full year, AT&T expects to see EPS “to the high end of the $3.50 range” and free cash flow to the high end of the $21 billion range. The consensus estimates are calling for $3.40 in EPS and $172.41 billion in revenue for the full year.
Randall Stephenson, AT&T chairman and CEO, commented:
It was an exciting quarter for AT&T as we completed the acquisition of Time Warner on June 14 and created a modern media company built around premium content, 170 million direct-to-customer relationships, advertising technology and high-speed networks.
Time Warner joins us coming off an impressive second-quarter. Turner turned in solid subscription and advertising revenue growth, Warner Bros. is in high gear with a record number of series in production, and HBO delivered strong subscriber revenue growth.
Shares of AT&T closed Tuesday up 2% at $31.66, with a consensus analyst price target of $36.64 and a 52-week range of $30.80 to $39.80. Following the announcement, the stock was initially down 1% at $31.29 in the after-hours session.