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Excerpt from our Wall Street Breakfast, a one-page summary of this morning's key market-moving and stock-moving stories:

AT&T Earns $2.17B in 3Q to Surpass Views [AP]

Summary: Yesterday's AT&T quarterly earnings report indicates the company's many acquisitions are starting to pay off: Profits increased a whopping 74% on strong growth at Cingular Wireless and savings from the merger of the old AT&T with SBC Communications (the company subsequently adopted the old AT&T's name and ticker, "T"). The dominant local phone provider in the Midwest and Southwest reported EPS of $0.56 compared vs. $0.38 during the same period last year. But while AT&T exceeded analyst expectations, the company had less-than-stellar news mixed into its report: Rollout of its new high-end cable television and internet service has continued to face delays and setbacks. The service has managed only 3,000 subscribers in the San Antonio area, and it is not clear when the service, which relays on a variety of new technologies, will be ready for widespread release.
Related links: AT&T Q3 2006 Earnings Call TranscriptAT&T Beats Street; Xerox Profit JumpsCiti: Buy AT&T and Sell VerizonAT&T-BellSouth Merger Still Needs FCC ClearanceAnnals of Accounting: A Look at AT&T and Verizon's MethodsAT&T Posts 74% Increase in Profit [WSJ] • AT&T Profit Rises 74% on Wireless Growth [NYT]
Potentially impacted stocks and ETFs: Verizon (NYSE:VZ), Sprint Nextel (NYSE:S), Comcast (NASDAQ:CMCSA), BellSouth (BLS) • First Tr Morningstar Div Leader (NYSEARCA:FDL)

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Source: AT&T Reports 74% Profit Surge But Faces Delays in Its High End Cable Rollout

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