AT&T Inc reported a higher-than-expected quarterly profit due to strength in its wireless business, sending its shares up 1 percent.
AT&T, the No. 2 U.S. mobile provider, posted a wireless margin of 45 percent based on earnings before interest, taxes, depreciation and amortization. This was well ahead of the average expectation of 42.5 percent from three analysts.
The company also added 320,000 contract customers in the second quarter, compared with the average expectation of about 233,000 from six analysts contacted by Reuters.
AT&T's profit rose to $3.90 billion, or 66 cents per share, from $3.59 billion, or 60 cents per share, a year earlier. The results beat Wall Street expectations of 63 cents per share, according to Thomson Reuters.
Revenue rose to $31.6 billion from $31.5 billion but fell a little short of analysts' expectations for $31.7 billion.
During the quarter, AT&T sold 53 percent of its telephone directory business to private equity firm Cerberus Capital Management LP for $750 million in cash.
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AT&T shares were up 1 percent at $35.75 in trading before the market opened.