AT&T Inc. (T) announced its financial results for the third quarter that beat consensus forecast, sending its shares up more than 6 percent on Thursday morning.
The telecommunications and media giant posted net income of $2.76 billion, or 39 cents per share, down from $3.70 billion, or 50 cents per share, in the comparable period last year. On adjusted basis, the company earned 76 cents per share, in line with the average analysts estimates.
Revenue for the quarter came in at $42.34 billion, down 5 percent versus last year, however, surpassed consensus forecast of $41.61 billion.
The Dallas, Texas-based company added 1.1 million new postpaid subscribers in the latest quarter. Comparatively, it added 245,000 new prepaid subscribers, while phone net additions came in at 645,000.
If we look at the sales performance of different segments, its communications revenue slipped 3.1 percent to $34.3 billion, though managed to beat the consensus forecast of $33.6 billion. Revenue from WarnerMedia plummeted 10 percent to $7.5 billion, as compared to analysts’ average estimate of $7.3 billion.
Looking forward, AT&T said partial closure of theaters and delay in theatrical releases due to the pandemic will hurt sales. Travel restrictions around the world is also expected to impact revenue the company generates from international roaming services.
AT&T (T) is currently trading around $28 on heavy volume of 49 million. The 52-week range of the stock is $26.08-$39.70. The company has a market capitalization of $201.637 billion, while its P/E ratio stands at 17.27.
The company’s share price declined sharply earlier this year following the pandemic. AT&T stock hit a new 52-week low of $26.08 in March. However, the stock did not recover to its pre-coronavirus price levels to date. Overall, AT&T share price fell more than 28 percent so far this year, and about 6 percent over the last 3 months.