Earnings: iPhone Helps AT&T Beat Expectations

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Earnings: iPhone Helps AT&T Beat Expectations

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Record iPhone activations helped AT&T (NYSE: T), the US’s largest phone company, report a third-quarter profit that beat analyst expectations. The company Q3 profits came in at $3.19 billion, or $0.54 a share, a slight dip from last year’s $3.23 billion, or $0.55 a share. Revenues were down 1.6 percent compared to last year to $30.9 billion. Analysts had expected $0.50 a share on $30.9 billion in revenue.

	3Q 2009	3Q 2008	Estimate
EPS	$0.54	$0.55	$0.50
Net Income	$3.19B	$3.23B	n/a
Revenue	$30.9B	$31.3B	$30.9B

The wireless network provider gained 2 million new subscribers, lured once again by the iPhone, easily topping forecasts of 1.4 million new adds. AT&T reported a “record” 3.2 million iPhone activations, its largest quarterly total to date, with nearly 40 percent of those activations coming from new subscribers to the network. AT&T now has a total of 81.6 million subscribers.

In contrast, AT&T’s wireline division continues to struggle, with a 30 percent fall in profit. U-Verse, the company’s big hope in the division, added 240,000 U-Verse TV customers to reach 1.8 million customers, compared with 232,000 a year ago.

Release | Investor Briefing in PDF | Slide Presentation | Conference Call

By Dianne See Morrison Oct 22, 2009 11:25 AM ET

Photo: AP Images