AT&T stock surged Thursday as March-quarter earnings topped analyst estimates while the telecom added more wireless postpaid phone subscribers than expected.
AT&T earnings for the first quarter were 77 cents on an adjusted basis. Revenue fell 13% to $38.1 billion.
Analysts had projected AT&T earnings of 61 cents a share on revenue of $38.2 billion, according to Factset. A year earlier, AT&T stock earned 85 cents a share on revenue of $43.9 billion.
AT&T stock jumped 4% to close at 20.21 on the stock market today.
AT&T Stock: Wireless Subscribers Top Estimates
In the earnings release, the company said "adjusted EPS for the prior year quarter has been recast for consistency to include gains on benefit-related and other cost investments."
Also, AT&T said it added 691,000 postpaid wireless phone customers vs. estimates for a 423,000 gain. In the March quarter, AT&T wireless service revenue climbed 4.8% to $14.7 billion versus estimates of $14.72 billion.
Results for AT&T included WarnerMedia — which was spun off on April 5 — but excluded satellite TV broadcaster DirecTV. AT&T spun off DirecTV and its pay-TV business to TPG Capital in August 2021.
WarnerMedia merged with Discovery in early April. The new media company is called Warner Brothers Discovery and trades under the ticker symbol WBD.
Shares Up This Year
AT&T stock has climbed 5% thus far in 2022.
According to IBD Stock Check-up, AT&T stock holds a Relative Strength Rating of only 49 out of a best-possible 99.
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Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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