AT&T misses on Q1 revenues, cites low wireless equipment sales

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It has 4.6 million AT&T Fiber customer locations, with plans to add two million in 2017.

However, the company's sales total dropped from $40.5 billion in the year-ago quarter because of its lowest wireless equipment sales on record, suggesting new customers were bringing their own phones or buying cheaper models.

"In a very competitive quarter, we continued to execute on our goals of driving efficiencies in our business while growing adjusted earnings per share", said Randall Stephenson, AT&T Chairman and CEO, in a statement.

Operating expenses fell to $32.5 billion from $33.4 billion; operating income was $6.9 billion versus $7.1 billion; and operating income margin was 17.4 percent versus 17.6 percent.

AT&T reported 2.7 million wireless network adds, more than the 2.08 million predicted by StreetAccount estimates.

Dallas, Texas-based telecom giant's first-quarter profit dropped to $3.56 billion or $0.56 per share from $3.89 billion or $0.61 per share past year.

Matched earnings estimates. The company posted adjusted earnings of 74 cents per share, matching the Zacks Consensus Estimate of 74 cents per share (this number excludes 18 cents from non-recurring items). In February, Verizon joined other carriers in offering an unlimited data plan for the first time in over five years. Wireless service revenues were up.9 percent, reflecting smartphone and tablet gains, and continued migration from consumer plans. The results underscore the company's strategy to realign the business to drive growth around media through the $85.4 billion purchase of Time Warner Inc. However, Straight Path said Tuesday that it received an offer from a "multinational telecommunications company" that topped AT&T's.

AT&T, the biggest USA pay-television operator after its $49 billion acquisition of DirecTV, reported its linear video business lost 233,000 customers in the quarter.

During the quarter, AT&T added almost 4,000 high-speed IP broadband business subscribers. AT&T stock, which has declined 3.5% in the past three months as the S&P 500 index has gained 3.3%, bounced between small gains and losses in after-hours trading.

AT&T on Tuesday updated its guidance for 2017, saying that it expects adjusted EPS growth in the mid-single digit range.

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