This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

AT&T Sees Wireless Profit Boost

Stocks in this article: T AAPL VZ

Story updated with additional wireless information from AT&T's second-quarter conference call.

DALLAS ( TheStreet) -- AT&T (T) grew its second-quarter profit by almost 26%, boosted by demand for wireless devices like Apple's (AAPL) iPhone, e-readers and global positioning systems.

Despite concerns that the new iPhone 4 would not significantly impact AT&T's quarter, the telco still managed to activate 3.2 million iPhones -- a company record.


AT&T earned 68 cents a share, up from 54 cents in the prior year's quarter. Excluding a 7 cent gain from an international stock transaction, AT&T earned 61 cents a share, which came in above analysts' estimates of 57 cents a share.

The telco brought in revenue of $30.8 billion during the quarter, a slight increase on the same period last year, when AT&T's sales were $30.7 billion. Analysts surveyed by Thomson Reuters, however, had predicted revenue of $30.9 billion.

Investors were nonetheless warming to AT&T's stock on Thursday morning. The company's shares were rising 53 cents, or 2.11%, to $25.44 shortly after market open.

AT&T faces stiff competition from rival Verizon (VZ), and has also struggled in an uncertain economy, although the telco is now adopting a much more bullish tone.

In a statement released before market open, Randall Stephenson, AT&T's CEO, said that there are "positive signs of growth" in almost every segment of the company's business, especially wireless. "These results add to our confidence going into the second half of the year," he said.

AT&T made 1.6 million net adds in total wireless subscribers, its best-ever second quarter, taking its total to 90.1 million subscribers. This was boosted by smartphones, increases in prepaid subscribers and growth in devices such as e-readers, GPS and alarm monitoring systems, according to AT&T.

During a conference call to discuss its second-quarter results, AT&T explained that the company's wireless prepaid net adds also increased by 300,000 thanks to the launch of Apple's iPad 3G.

The telco added that, even with record iPhone activations during the quarter, AT&T's wireless service margin was up more than 43%.

The company also raised its 2010 outlook. Previously, the company had predicted "stable-to-improved" earnings in line with its 2008 results, but now expects "strong" earnings per share growth for 2010.

Analysts surveyed by Thomson Reuters expect AT&T to earn $2.26 a share this fiscal year and bring in revenue of $124.16 billion.

In its statement, AT&T confirmed that preorder sales of the new iPhone 4 were 10 times higher than the first day of preordering for the iPhone 3GS last year.

-- Reported by James Rogers in New York

Follow James Rogers on Twitter.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs