China Mobile EPS Up, Shares Down

Shares of China Mobile (CHL Quote - Cramer on CHL - Stock Picks) were lower Thursday after the mobile giant posted first-half results roughly in line with expectations and failed to provide an update on the much-anticipated rollout of its third-generation wireless network.

The world's largest cell-phone service provider posted a first-half profit of 30.2 billion yuan (approximately $3.8 billion), up 26% from the year-ago levels. Analysts were expecting profits of 29.9 billion, according to Dow Jones.

The company said revenue rose 20% vs. the first half of 2005, to 137 billion yuan, and also declared a dividend of 62 Hong Kong cents a share.

Still, China Mobile shares were recently down 78 cents, or 2.3%, to $33.63 as traders expressed disappointment with the lack of specificity on the 3G wireless front, which is awaiting regulatory approval.

In regard to the issue, China Mobile said it will "actively carry out preparatory work in the planning and construction of and market operations for 3G, in order to prepare for the launch of the commercial application of 3G."