AT&T Q3 Profit Beats Estimates; Revenues Up 4.7% On Comparable Basis

(RTTNews) - AT&T Inc. (T) reported an increase in profit for the third quarter that also topped Wall Street estimates. Adjusted earnings per share increased 14.5% year over year. Excluding U.S. Video, revenues were up 4.7%, for the quarter. The company said the results showed continuing customer growth in wireless, fiber and HBO Max. Mobility recorded 928,000 postpaid phone net adds during the quarter, the best postpaid phone net add quarter in more than 10 years. Net debt decreased by $10.0 billion sequentially, during the quarter.

Looking forward, the company said it now expects full-year adjusted earnings per share to be at the high end of the low- to mid-single digit growth range and is on track with its free cash flow target of $26 billion range.

Third-quarter adjusted earnings per common share was $0.87 compared to $0.76, previous year. On average, 17 analysts polled by Thomson Reuters expected the company to report profit per share of $0.78, for the quarter. Analysts' estimates typically exclude special items. Net income to common stock was $5.9 billion, or $0.82 per common share, compared to $2.8 billion, or $0.39 per common share, a year ago.

Consolidated revenues were $39.9 billion compared to $42.3 billion, last year, down 5.7% reflecting the separation of the U.S. Video business, other divested businesses, and lower Business Wireline revenues. Analysts expected revenue of $39.14 billion, for the quarter. Excluding impacts of the U.S. Video business from both quarters, consolidated revenues were $38.1 billion compared to $36.4 billion, last year.

Total global HBO Max and HBO subscribers were 69.4 million at the end of the quarter, up 12.5 million year over year. Total WarnerMedia revenues were up 14.2% to $8.4 billion. The company expects to reach the higher end of the end-of-year HBO Max/HBO global subscriber target of 70-73 million subscribers.