Internet, Wireless Subscribers
Surge For AT&T
Matthew Kirdahy, 01.25.07, 2:31 PM
stock wouldn’t get as much of a push from its earnings report
Thursday as it did in a pervious session on the success of its
wireless communications division, Cingular.
people ) said Thursday that its fourth-quarter earnings
increase was powered by growth in Internet and wireless
Shares edged up
30 cents, less than 1%, to $36.92 in midday trading. The stock
set a new 52-week high earlier in the session, showing a gain
of about 4% in the past two days.
Antonio, TX.-based company’s No. 1 Cingular Wireless unit
Wednesday reported its fourth-quarter
profit nearly quadrupled, boosted by customer growth
during the winter holidays.
which was re-branded under the AT&T name, was a joint venture
of Atlanta-based BellSouth (nyse:
people ) and AT&T before AT&T completed its $86 billion
purchase of BellSouth in December. The wireless company will
report earnings as part of the parent company in future
announced BellSouth’s quarterly results, which yielded 68
cents per share, up 28.3% from the year-ago period.
“While we view
the quarter as relatively neutral,” said Goldman Sachs analyst
Jason Armstrong, “the guidance and the strong performance at
BellSouth is generally positive for AT&T.”
said it expects synergies from the BellSouth merger to be
higher than previously forecast. It said it expects total
synergies to be $0.8 billion to $1.2 billion in 2007, up from
a previously expected $0.5 billion to $0.8 billion.
It said it now
sees the net value of the synergies to be around $22 billion,
up from a previous estimate of $18 billion.
AT&T also said
profit, excluding merger-related costs and other special
items, rose 38.5% from a year earlier, to $2.4 billion, or 61
cents a share. The results include AT&T’s 60% stake in
Cingular Wireless, which AT&T now owns outright.
by Thomson Financial expected earnings of 59 cents per share.
income rose 17.1% from the same quarter a year earlier to $1.9
billion, or 50 cents per share.
AT&T also said
its high-speed Internet subscribers totaled 8.5 million, up
23.4% from a year earlier.
$1.1 billion in total synergies from the SBC merger, compared
to its forecast last year for $600 million to $800 million in
synergies. The companies announced a $16 billion merger in
The company now
expects to deliver double-digit percentage growth in earnings
per share in the next two years.
© 2007 Forbes.com LLC™