AT&T ( T) posted a narrower loss in the fourth quarter as Apple's ( AAPL) iPhone helped generate record smartphone sales. The telecom gant posted a loss of 68 cents a share, or $3.9 billion, compared with a loss of $1.12 a share, or $6.7 billion, a year earlier. Adjusted earnings in the quarter were 44 cents a share, up from 40 cents a year earlier. Analysts were looking for earnings of 46 cents a share. AT&T posted revenue of $32.6 billion, an increase of 0.2% and above analysts' forecasts of $32.22 billion. The company's total wireless revenue, which includes equipment sales, rose 5.7% to $17.6 billion. AT&T added 1.1 million wireless subscribers during the quarter, bringing the total to 107 million. This included 780,000 postpaid net adds, AT&T's biggest gain in 12 quarters. AT&T sold a record 10.2 million smartphones and activated a record 8.6 million iPhones. AT&T also had its best-ever sales quarter for Android phones, but confirmed that record smartphone sales hurt margins. Fourth-quarter wireless operating income margin was 14.5%, down from 15.5% a year earlier. In 2013, AT&T expects revenue growth to exceed 2% and to deliver earnings per share growth in the upper-single digits or higher. AT&T Narrows Loss as Smartphones Fly Out the Door
Starbucks ( SBUX), the coffee chain, said Thursday that fiscal first-quarter profit rose 13%. Starbucks said global same-store sales in the quarter rose 6%. Starbucks earned $432.2 million, or 57 cents a share, in the quarter, up from $382.1 million, or 50 cents a share, in the year-earlier period. Total revenue rose 11% to $3.8 billion. Analysts were expecting earnings of 57 cents a share on revenue of $3.85 billion. The company affirmed its outlook for the year, with earnings expected to be between about $2.10 and $2.15 a share, which represents growth of 15% to 20% from the previous year.
Procter & Gamble ( PG) is expected by Wall Street Friday to post fiscal second-quarter earnings of $1.11 a share on revenue of $21.91 billion. P&G May Be Less of a Gamble Than You Think
Honeywell ( HON) is expected by analysts to report fourth-quarter earnings Friday of $1.09 a share on revenue of $9.51 billion.
Cisco ( CSCO) reached an agreement to sell its home networking business unit, including the Linksys router brand, to privately held Belkin, a maker of smartphone cases and computing accessories. A purchase price for the deal, which is expected to close in March, wasn't disclosed.
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