AT&T Shares Fall After Hours Despite Earnings Beat
AT&T Chairman and CEO Randall Stephenson

AT&T (T)  shares fell after the market close on Tuesday, despite the telecom beating second-quarter earnings expectations.

The telecom giant earned 91 cents adjusted per share and generated $39 billion in sales. Wall Street called for AT&T to earn 87 per share on a non-GAAP basis and to post revenues of $38.7 billion, according to FactSet.

Shares of AT&T dropped about 1.3% to $31.23 after hours. The stock has fallen about 18% year to date.

The Dallas telecom and media group added 342,000 subscribers to its DIRECTV NOW service, bringing total subscribers to the streaming pay-TV package to 1.8 million. Including online and traditional satellite and cable TV, AT&T added 80,000 net video subscribers.

The company also gained 46,000 net postpaid phone subscriptions.

AT&T closed the purchase of Time Warner for $85.4 billion, or $108.7 billion including assumed debt, in June. The Department of Justice has appealed a U.S. District Court ruling that allowed the Time Warner deal to close, but expect AT&T Chairman and CEO Randall Stephenson to take a victory lap in the first earnings call since the transaction closed.

Stephenson's lieutenants will be on the call, including WarnerMedia CEO John Stankey, AT&T advertising CEO Brian Lesser, AT&T Communications division CEO John Donovan and AT&T International CEO Lori Lee.

Rival Verizon (VZ)  beat expectations before the market open Tuesday, with earnings of $1.20 per share in the second quarter that topped forecasts of $1.14 per share. Verizon's wireless services business grew nearly 1% to $15.75 billion, topping expectations of $15.3 billion. Not counting new rules on accounting for revenues, the sales grew 2.5%.

More from Markets

Rewind: Jim Cramer on the Market Selloff, Macy's, Constellation and Canopy

Rewind: Jim Cramer on the Market Selloff, Macy's, Constellation and Canopy

Loncar China BioPharma ETF Makes Nasdaq Debut

Loncar China BioPharma ETF Makes Nasdaq Debut

Stocks Close Lower But Trim Losses With Late Rebound

Stocks Close Lower But Trim Losses With Late Rebound

China Set to 'Weaponize' Yuan to Fight Trump's Trade War: Report

China Set to 'Weaponize' Yuan to Fight Trump's Trade War: Report

Jim Cramer on Canopy Growth's New $4 Billion Stake From Constellation Brands

Jim Cramer on Canopy Growth's New $4 Billion Stake From Constellation Brands