Telecom giant AT&T Inc. (T) on Tuesday posted first quarter earnings results that beat Wall Street’s view, helped by higher smartphone sales and lower wireless customer churn.
The Dallas-based company reported first quarter net income of $3.58 billion, or 60 cents per share, compared with $3.4 billion, or 57 cents per share, in the year-ago period.
Revenue rose 1.8% from last year to $31.82 billion.
On average, Wall Street analysts expected a smaller profit of 57 cents per share, albeit on slightly higher revenue of $31.85 billion.
CEO Randall Stephenson commented, “We continue to capitalize on our terrific momentum in mobile Internet. Smartphone and branded computing device sales continue to set a record pace, mobile data revenues were up nearly 20 percent, and we achieved this growth with expanding margins.”
AT&T shares rose 45 cents, or +1.3%, in premarket trading Tuesday.
The Bottom Line
We have been recommending shares of AT&T (T) since Mar.12, 2009, when the stock was trading at $23.35. The company has a 5.75% dividend yield, based on last night’s closing stock price of $30.61.
AT&T Inc. (T) is a “Recommended” dividend stock, holding a Dividend.com DARS™ Rating of 3.5 out of 5 stars.