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AT&T Inc., the largest U.S. telecommunications company by market cap, reported profits in its recently-ended quarter rose 17%, helped by record gains at AT&T-owned Cingular Wireless which reported tripled profits yesterday.t By the numbers, profits climbed to $1.9 billion (EPS of $0.50), up from $1.7 billion (EPS of $0.46) during the year-earlier period. Revenue rose 23.1% to $15.9 billion from $12.9 billion, mostly owing to the acquisition of the old AT&T last year. The results mainly exclude sales and profits from BellSouth, acquired in the last days of the quarter. Omitting merger-related costs and other one-time items, AT&T earned $2.4 billion good for EPS of $0.61; Thomson analyst estimates called for EPS of $0.59 before additional items were removed. Looking to 2007, AT&T said it expects significantly greater savings from its $87 billion purchase of BellSouth; the company expects overall revenue, adjusted for recent BellSouth acquisition, to post moderate growth in the coming year.

• Sources: Press Release, TheStreet.com, Reuters, MarketWatch. Conference Call Transcripts: scheduled for 10:00 AM EST. Check back later today.
• Related commentary: Cingular Triples Profits On Addition of 2.4 Million New Subscribers, AT&T: Optimism On Cingular Growth, Cramer's Take on T
• Potentially impacted stocks and ETFs: AT&T Inc. (NYSE:T). Competitors: Sprint Nextel Corp. (NYSE:S), Verizon Communications Inc. (NYSE:VZ), Vodafone (NASDAQ:VOD), Qwest Communications International Inc. (NYSE:Q).
ETFs: iShares S&P Global Telecom ETF (NYSEARCA:IXP), iShares Dow Jones U.S. Telecom Sector Index ETF (NYSEARCA:IYZ), PowerShares Dynamic Telecom & Wireless ETF (PTE), PowerShares FTSE RAFI Telecommunications & Technology Portfolio (PRFQ), Vanguard Telecom Services ETF (NYSEARCA:VOX), Telecom HOLDRS ETF (NYSEARCA:TTH)

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Source: AT&T Boosts Earnings, Revenue On Strong Cingular Growth