At an investor conference Stephens said the wireless carrier will see higher churn in the fourth quarter than in the year-ago quarter, though the company still expects its subscriber count to grow, according to the Wall Street Journal. The comments echo statements from Verizon (VZ) on Monday when the carrier said more subscribers were leaving for competitors in the fourth quarter than in the previous quarter.
Stephens added that AT&T expects wireless service margins for the fourth quarter to be comparable or better than those in the year-ago quarter.
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AT&T reduced prices for many of its wireless customers earlier in the year in response to lower prices offered by T-Mobile (TMUS) and Sprint (S) . Sprint recently launched a promotion to offer wireless plans to existing AT&T customers that are half of their current monthly costs.
Both Sprint and T-Mobile offer lower price plans and promotions to pay for early termination fees from the two larger carriers.
TheStreet Ratings team rates AT&T INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation: