AT&T stock rose as June quarter earnings and revenue topped analyst estimates while wireless postpaid phone subscribers came in well above expectations.
The telecom company, which in May agreed to merge its WarnerMedia business with Discovery (DISCA), said second quarter adjusted profit rose 7% to 89 cents from a year earlier. AT&T (T) revenue climbed 7.6% to $44 billion.
Analysts had projected AT&T earnings of 79 cents a share on revenue of $42.64 billion. A year earlier, AT&T stock earned 83 cents a share on revenue of $41.1 billion.
In addition, AT&T said it added 789,000 postpaid wireless phone customers vs. estimates for a 287,000 gain.
AT&T stock edged up 0.3% to 27.98 in early trading on the stock market today.
AT&T Stock: WarnerMedia Rebounds From Pandemic Lockdown
Wireless service revenue climbed 5% to $14.3 billion, topping estimates of $14.1 billion. WarnerMedia revenue popped nearly 31% to $8.8 billion from a year earlier.
AT&T said it added 2.8 million HBO and HBO Max streaming video subscribers in the quarter. HBO and HBO Max ended the quarter with 47 million subscribers, up nearly 11 million subscribers from a year earlier.
AT&T recently spun off its DirecTV video business into a new company in a deal with private equity firm TPG.
The company updated 2021 guidance. Excluding the DirecTV/TPG transaction, AT&T said it expects consolidated revenue growth in the 2% to 3% range and adjusted EPS to grow in the low- to mid-single digits.
Despite its hefty dividend, AT&T stock holds a Relative Strength Rating of only 17 out of a best-possible 99.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.