AT&T stock gains after net profit missed, but revenue beat

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Shares of AT&T Inc. rose 0.7% in premarket trading Thursday, after the telecommunications and media giant reported a third-quarter net loss that missed expectations but revenue that beat forecasts. Net income fell to $2.76 billion, or 39 cents a share, from $3.70 billion, or 50 cents a share, in the year-ago period. The FactSet consensus for net earnings per share was 51 cents. Total revenue fell 5.0% to $42.34 billion, above the FactSet consensus of $41.61 billion. Postpaid subscriber net additions were 1.1 million, with phone net adds of 645,000, while prepaid subscriber net adds were 245,000. Total postpaid churn was 0.85%, with postpaid phone-only churn was 0.69%. Communications revenue fell 3.1% to $34.3 billion but beat the FactSet consensus of $33.6 billion, and WarnerMedia revenue dropped 10.0% to $7.5 billion but beat expectations of $7.3 billion. The company sees fourth-quarter revenue being hurt by the partial closure of movie theaters and postponement of theatrical releases as a result of the COVID-19 pandemic, and by the decline in international roaming wireless services revenue due to reduced travel. The stock, which fell for 10-straight days through Wednesday, has tumbled 31.6% year to date, while the S&P 500 has gained 6.3%.
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