AT & T (T) reported Wednesday that fourth-quarter earnings were in line with expectations, but revenues and new mobile subscribers did not match analyst estimates. AT & T shares fell in the morning trade.
Telecommunications giant said fourth-quarter adjusted earnings are 86 cents a share, an increase of 10% over the previous year. Sales increased 15% to $ 48 billion. AT & T's results included Time Warner, which was acquired in mid-June.
A year earlier, AT & T's revenue was 78 cents, with revenue of $ 41.70 billion. Analysts expected AT & T to earn a profit of 86 cents on December 31 for sales of $ 48.53 billion.
AT & T said it added 134,000 subscribers to postpaid wireless phone companies. The company said its satellite television business in DirecTV had lost 403,000 subscribers, more than the 298,000 analysts had predicted. AT & T also lost 267,000 online video subscribers as it reduced the marketing promotions.
AT & T expects $ 26 billion in free cash flow for 2019 and an adjusted single-digit earnings increase per share that is in line with analyst estimates.
"The results were mixed, with margins across all segments offset by weak subscriber growth," said Jonathan Chaplin, an analyst at New Street Research. "AT & T's key performance this year is to meet its $ 26 billion forecast of free cash flow, and the margin expansion seen this quarter will help them get there Business not big. "
AT & T shares have recently fallen 5.3% to 29.09 on today's stock exchange.
Editor's note: In an earlier version of this story, the number of subscribers lost to AT & T's DirecTV satellite television business was underestimated]
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