• Revenue in the first quarter rose 2.9% to $31.5 billion, ahead of the consensus estimate of $31.24 billion, as per Fiscal AI.
• The company added 294,000 postpaid phone subscribers during the quarter, higher than the 262,000 estimate polled by Bloomberg.
• The $5.75 billion Lumen deal, which closed in February this year, also brought one million home internet customers for the telecom giant.

AT&T (T) on Wednesday delivered a double-beat in its first-quarter earnings report, aided by bets on offering converged services and the recently closed acquisition of Lumen’s consumer fiber business.

Revenue in the first quarter rose 2.9% to $31.5 billion, ahead of the consensus estimate of $31.24 billion, as per Fiscal AI, and adjusted earnings per share were $0.57 per share, edging past expectations by three cents. 

The company added 294,000 postpaid phone subscribers during the quarter, higher than the 262,000 estimate polled by Bloomberg.

For the full year, the company continues to expect service revenue growth in the low single-digit range; adjusted EPS of $2.25 to $2.35, in line with the $2.30 midpoint estimate; and capital expenditures of $23 billion to $24 billion, above the $22.73 billion estimate.

Zooming In On AT&T

Earlier this year, the company launched “OneConnect,” a new single subscription that bundles its mobile and home internet offerings, appealing to customers who didn’t want to juggle multiple bills. 

“Customers are increasingly purchasing their internet and wireless together from AT&T, highlighting the strength of the company's differentiated, investment-led strategy to drive converged advanced connectivity at scale,” said CEO John Stankey.

The $5.75 billion Lumen deal, which closed in February this year, also brought one million home internet customers for the telecom.

It is also notable that the company began reporting under the new segment “Advanced Connectivity” starting from this Q1 report.

While AT&T touted growth in its new advanced connectivity segment and in Latin America, it saw double-digit percentage declines in the legacy business, which the company said was expected as it continued decommissioning its copper-based network. 

How Did Retail Traders React?

On Stocktwits, retail sentiment continued to remain ‘bullish’ amid a 79% spike in messaging volumes over the last 24 hours.

One user on the platform cheered the report and noted that the telecom giant is executing on its convergence strategy “very well.”

Year-to-date, the stock gained nearly 4%, still above the benchmark S&P index’s 3.2% rally for the same period. T is down 2.4% in early open market trading on Wednesday. 

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