AT&T Inc. (NYSE: T), the No. 1 telecommunications carrier, reported third-quarter net income that narrowly exceeded estimates because more mobile customers signed up for long-term contracts that expected.
The Dallas-based carrier said net income rose slightly to $3.64 billion, or 63 cents a share, from $3.63 billion, or 61 cents a year ago. Revenue eased slightly to $31.5 billion. The report beat estimates of analysts polled by Thomson Reuters by a penny.
“We had another impressive quarter with strong earnings growth,” said CEO Randall Stephenson before speaking with analysts Wednesday. He predicted ATT’s free cash flow will be at least $18 billion, or $2 billion above prior estimates.
The company sold 6.1 million smartphones, activated 4.7 million iPhones from Apple (Nasdaq: AAPL), the world's most valuable technology company, and reported its best-ever sales of Android phones using the OS from Google (Nasdaq: GOOG), the No. 1 search engine.
Last week, No. 2 Verizon Communications also reported earnings that beat estimates.
AT&T shares were flat at $35 in early trading.
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