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AT&T (T -0.9%) gives back the premarket gains it saw following its Q3 report (I, II). For...

AT&T (T -0.9%) gives back the premarket gains it saw following its Q3 report (I, II). For yet another quarter, stock buybacks (they soared to $3.8B in Q3) allowed EPS to beat estimates even as revenue missed. Also, total wireless net adds fell to 678K from Q2's 1.3M, and postpaid net adds fell to 151K from 320K. Wireless operating margin fell 410 bps Q/Q to 26.2%, partly due to a 20% Q/Q increase in smartphone sales. Total churn rose to 1.34% from Q2's low 1.18%. Verizon (VZ +0.9%), interestingly, is going in the opposite direction.
Comments (2)
  • Rather than buy back $3.8B they should have fixed their pension short fall. IMO.
    24 Oct 2012, 01:24 PM Reply Like
  • Exactly. Big fan of buybacks for companies with great balance sheets.

     

    T should spend money on pensions and reducing debt. Don't understand why it takes the risk of running into financial difficulties down the road if S becomes a strong competitor.
    24 Oct 2012, 02:52 PM Reply Like
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