T's Q3 Earnings Top Forecast

AT&T (T 25.54 +0.63) reported second quarter earnings of $0.61 per share, $0.04 better than the Thomson Reuters consensus of $0.57.

Revenues rose 0.6% year-over-year to $30.81 billion versus the $30.9 billion consensus. EPS excludes a $0.07 one-time gain from the exchange of Telmex Internacional stock for shares of America Movil.

Due to improved revenue trends and strong execution, AT&T has updated its earnings outlook for full-year 2010. Previously the company expected stable-to-improved earnings per share, stable-to-improved consolidated operating income margins and free cash flow in line with 2008 results. The company now expects strong earnings per share growth for full-year 2010, improved consolidated operating income margins and free cash flow above 2008 levels.

These results were driven by continued growth in mobile broadband, including a record quarter for iPhone activations, gains in IP-based and strategic business services and disciplined execution on cost initiatives.