NEW YORK (TheStreet) -- AT&T (T) was falling -1.6% to $35.71 in after-hours trading Tuesday despite beating analysts' expectations for earnings in the first quarter and adding more than one million wireless subscribers.
The telecom reported earnings of 71 cents a share for the first quarter, beating analysts' expectations of 70 cents a share. Revenue increased 3.5% from the year-ago period to $32.47 billion, in-line with estimates from analysts surveyed by Thomson Reuters.
Wireless revenue grew 7% from the year-ago quarter. The telecom saw a net add of 625,000 postpaid subscribers in the first quarter, making it the best first-quarter net add in five years. The wireless carrier saw more than 1 million total net adds in the quarter including prepaid subscribers. Postpaid churn was 1.07%, down sequentially from the previous quarter, and up from the year-ago quarter.
AT&T added more than 1.1 million postpaid smartphones in the quarter including upgrades and new subscribers. Smartphones accounted for 92% of all postpaid phone sales.
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TheStreet Ratings team rates AT&T INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate AT&T INC (T) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income, notable return on equity, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow."