AT&T Inc on Thursday posted stronger-than-expected wireless growth in the fourth quarter and reiterated its 2008 outlook, easing investor concerns that US economic weakness would hurt its subscriber growth.
The largest US phone company had warned earlier this month that it saw some softness in its consumer business but it said on Thursday that it added 2.7 million net new wireless subscribers in the quarter, showing that growth was resilient. Five analysts contacted by Reuters had on average estimated AT&T's new subscribers at 1.92 million for the fourth quarter.
AT&T also said its fourth-quarter profit was $3.1 billion, or 51 cents per share, compared with $1.9 billion, or 50 cents a share, a year earlier. Most of the year-ago quarter excludes earnings from BellSouth, which AT&T bought at the end of 2006.
Before merger-related costs and other special items, AT&T's profit rose to 71 cents a share from 61 cents a year ago, matching Wall Street expectations. AT&T said quarterly revenue grew 2.9 percent to $30.3 billion assuming it owned Bellsouth for both full quarters.
AT&T last month forecast 2008 consolidated revenue growth in the mid-single-digit percentage range and adjusted earnings-per-share growth in the double-digit range. It also forecast wireless service revenue growth in the mid teens. The company also said on Thursday it had approved a buyback of 400 million shares, or 6.6 percent of its shares outstanding, and expects to complete the transactions by the end of 2009.
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