Jul 24, 2012, 06.47 PM | Source: Reuters
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.