Inside AT&T’s 3Q17 Earnings Growth
AT&T’s earnings over the last few quarters
AT&T (T) reported mixed 3Q17 results, with postpaid phone losses higher than the Wall Street analysts’ consensus estimate. AT&T reported decent EPS (earnings per share) in 3Q17, though its consolidated revenues of $39.7 billion fell shy of the $40.1 billion anticipated by analysts.
In 3Q17, AT&T’s adjusted EPS remained flat YoY (year-over-year), reaching $0.74 but just missing the estimated EPS of $0.75.
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AT&T’s consensus versus actual earnings
AT&T’s earnings met the analysts’ consensus expectations in 1Q17, 4Q16, and 3Q16, but the telecom company reported better numbers than the analysts’ expectations in 2Q17. In 2Q17, AT&T’s earnings outperformed the analysts’ consensus estimates by ~8.2%.
In 3Q17, AT&T added 3.0 million total net wireless subscribers, battling intense competition from competitors Sprint (S) and T-Mobile (TMUS). The telecom company was able to extend its gains by increasing its footprint in Mexico, backed by the growth of connected devices as a result of IoT (Internet of Things).
By comparison, Verizon Communications’ (VZ) adjusted EPS fell ~3.0% YoY in 3Q17 to reach $0.98 on the exclusion of one-time items. T-Mobile’s EPS rose ~50.0% YoY to reach $0.63, while Sprint’s EPS rose from a loss of $0.04 in fiscal 2Q16 to a loss of $0.01 in fiscal 2Q17 (quarter ending September 2017).
In the next part, we’ll look at AT&T’s total revenue growth in 3Q17.