The company reported earnings per share of $0.86, surpassing the $0.78 that analysts had predicted. Revenue also exceeded expectations, coming in at $45.48 billion compared to the predicted $44.17 billion. These positive results were driven by strong performance in the company’s wireless and broadband segments.
AT&T’s wireless segment saw a significant increase in postpaid subscribers, with 1.2 million net additions during the quarter. This growth was driven by the success of the company’s promotional offers and expanded 5G network coverage. Additionally, the company’s broadband segment saw an increase in subscribers as more people worked and learned from home due to the ongoing pandemic.
Another factor contributing to AT&T’s strong performance was the success of its streaming service, HBO Max. The company added 2.8 million subscribers to the platform during the quarter, bringing the total to 47 million. This growth is particularly impressive considering the intense competition in the streaming industry.
AT&T’s management expressed optimism about the company’s future prospects, citing strong demand for its products and services as well as ongoing cost-cutting initiatives. The company also announced plans to invest in expanding its 5G network and improving its broadband infrastructure to meet growing customer demand.
Investors reacted positively to the earnings report, sending AT&T’s stock price soaring by over 7% in after-hours trading. This surge comes as welcome news for shareholders, many of whom have seen the stock language in recent years due to concerns about the company’s debt levels and competition in the telecommunications industry.
Overall, AT&T’s strong quarterly earnings report has renewed confidence in the company’s ability to navigate challenging market conditions and capitalize on opportunities in the rapidly evolving telecommunications and media landscape. With a solid performance in key segments and a clear strategy for growth, AT&T appears well-positioned to deliver value to shareholders in the coming quarters.