Boston, MA 10/31/2013 (wallstreetpr) – American telecommunications major AT&T Inc. revealed net income that exceeded investor expectations by a cent on Wednesday. This is due to AT&T Inc. (NYSE:T)’s wireless profit margins that beat analyst predictions, though revenue was slightly behind analyst estimates. In its recently released earnings report, AT&T disclosed a 4.9% increase in net profit of $3.81 billion for the third quarter, compared to $3.63 billion for the same quarter a year ago. Excluding unusual items, the mobile company has earned $0.66 a share in the third quarter which exceeded analyst estimates of $0.65 a share. Revenue for the telecom giant has increased by 2.2% to about $32.16 billion, which almost touches investor expectations of $32.19 billion. AT&T’s stock dividend yield of 5.2% is, however, considered the best on the Dow by analysts. AT&T, currently the second leading mobile service provider in the USA after Verizon Communications Inc. (NYSE:VZ), reported that it has added 363,000 net new post paid subscribers in its third quarter, better than its previous year growth for the same quarter, and is currently slightly ahead of expectations.
Meanwhile, the national carrier for USA has seen good sales revenue recently, with record growth in smartphone sales revenue. The telecom carrier recently sold off about 9,700 of its cell towers to wireless infrastructure provider Crown Castle International Corp. (NYSE:CCI), raising about $4.85 billion in liquid cash. To sustain further growth, AT&T is looking at making acquisitions in Europe. The company is also in the process of acquiring prepaid wireless carrier Leap Wireless for $1.2 billion plus $2.8 billion in net debt.
AT&T shares were trading at a consistent rate and were largely unchanged at closing on October 24, staying at $34.63, which is the same as its previous close on the New York Stock Exchange. After-hours trading saw a small hike to $35.28.