Jul 24, 2012, 06.47 PM IST
AT&T Inc reported a higher-than-expected quarterly profit due to strength in its wireless business, sending its shares up 1%.
AT&T, the No. 2 US mobile provider, posted a wireless margin of 45% based on earnings before interest, taxes, depreciation and amortization. This was well ahead of the average expectation of 42.5% from three analysts.
The company also added 320,000 contract customers in the second quarter, compared with the average expectation of about 233,000 from six analysts contacted by Reuters.
AT&T's profit rose to USD 3.90 billion, or 66 cents per share, from USD 3.59 billion, or 60 cents per share, a year earlier. The results beat Wall Street expectations of 63 cents per share, according to Thomson Reuters I/B/E/S.
Revenue rose to USD 31.6 billion from USD 31.5 billion but fell a little short of analysts' expectations of USD 31.7 billion.
During the quarter, AT&T sold 53% of its telephone-directory business to private equity firm Cerberus Capital Management LP
AT&T shares were up 1% at USD 35.75 in trading before the market opened.
Video of the day
Dec 6 2013, 15:02
- in MARKET OUTLOOK
Dec 4 2013, 11:08
- in FII View
Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.