Investing.com - AT&T reported third quarter earnings that missed analysts forecasts on Wednesday, but revenue was solid, led by gains in Mobility and WarnerMedia.
The firm reported earnings per share of $0.90 on revenue of $45.7bn, compared to forecast for earnings per share of $0.93 on revenue of $45.33bn.
Consolidated revenues for the third quarter were up 15.3% on a year-over-year basis, “primarily due to the Time Warner acquisition,” the company said in a statement.
AT&T (NYSE:T) shares were down 1.88% in pre-market trade following the report.
The company reaffirmed its 2018 guidance of adjusted earnings per share at the high end of $3.50 range, free cash flow at the high end of the $21 billion range and net capital expenditures at the $22 billion range.
The company reported a net increase of 4.3 million wireless subscribers, made up of 3.4 million in the U.S. and 907,000 in Mexico.
Operating income came in at $7.3bn, up 25.2% on a year-over-year basis, the company said.
WarnerMedia, known as Time Warner before its acquisition, generated revenue of $8.2bn, an increase of 6.5% year-over-year.
“I’m pleased with the progress we made on a number of fronts in the third quarter,” Randall Stephenson, AT&T chairman and CEO, said in a statement. He added that WarnerMedia was “immediately accretive in its first full quarter” and contributed 5 cents to EPS.
For the year, AT&T shares are down 15.46%, under-performing the S&P 500 which is up 2.12% year to date.