-- AT&T (T) reported better-than-expected first-quarter results on Wednesday, while the telecommunications giant reiterated its full-year earnings outlook.
The company reported adjusted earnings of $0.57 a share for the March quarter, up from $0.51 the year before, topping the FactSet-polled consensus of $0.55. Operating revenue improved 2.9% to $31.51 billion, ahead of the Street's view for $31.25 billion.
"We saw our best first quarter ever for advanced connectivity internet customer net additions, demonstrating the solid foundation of assets we have built," Chief Executive John Stankey said in a statement. "The actions we've taken this quarter are evidence of how we are improving the customer value proposition, scaling faster, and accelerating growth."
AT&T continues to anticipate adjusted EPS to be in a range of $2.25 to $2.35 in 2026. The Street is looking for non-GAAP EPS of $2.30. Service revenue is still pegged to grow in the low-single-digit range for the ongoing year.
The stock was down 1.8% in the most recent premarket activity.
Revenue in the advanced connectivity segment rose 4.7% to $28.47 billion in the first quarter, driven by gains of 3.6% in services and 9.3% in equipment from higher wireless device sales volumes, according to the company. Wireless service revenue was up 1.7%, buoyed by growth in retail wireless subscribers in underpenetrated categories and converged accounts, the firm said.
The legacy business saw a 25% drop in revenue to $1.77 billion, mainly due to lower demand for services. Latin America recorded revenue of $1.17 billion, up from $971 million in the prior-year period.
AT&T added 294,000 net postpaid phone subscribers in the quarter, down from 324,000 a year earlier, but above the consensus on FactSet for 267,000. In the previous quarter, the company logged additions of 421,000 subscribers.