Tag Archives: technology

AT&T Postpaid Phone Subscriber Losing Streak Hits Six Quarters

Telecom conglomerate AT&T ( T ) reported Q1 earnings late Tuesday that topped expectations and in-line revenue, as it had a net loss of postpaid phone subscribers — those billed monthly — for the sixth quarter in a row amid fierce wireless competition. AT&T lost 363,000 postpaid phone customers, who are considered more lucrative than prepaid customers who buy minutes as needed. AT&T stock was down 1% in premarket trading Wednesday. T-Mobile US ( TMUS ) on Monday said it added  877,000 postpaid phone lines in Q1, while Verizon Communications ( VZ ) on Thursday reported a loss of 8,000. “AT&T has been a share donor for six consecutive quarters in postpaid handsets, which have by far the highest customer lifetime value,” said Paul de Sa, analyst at Bernstein Research, in a research note. Including tablet users, AT&T added 129,000 postpaid subscribers overall, also below Wall Street estimates. AT&T has focused on selling consumers  product bundles of wireless and DirecTV video services. T-Mobile, meanwhile, has thrived with its Uncarrier-branded promotions, while Sprint ( S ) continues to compete aggressively on price, analysts say. Sprint had been losing postpaid phone subscribers for several years before recently reversing the trend. “Postpaid net adds came in light at 129,000 as AT&T simply refuses to aggressively compete and instead focus on profitability and other areas of the business,” said Colby Synesael, analyst at Cowen & Co., in a report. AT&T said Q1 earnings rose 11% to 72 cents per share, excluding items, topping analysts’ estimate of 69 cents. Including the acquisition of satellite broadcaster DirecTV, AT&T said revenue rose 24% to $40.53 billion, in line with views. AT&T said it lost 382,000 landline  U-verse TV customers while DirecTV gained 328,000, up from 60,000 in the year-earlier period. AT&T had a net loss of 54,000 video subscribers in the March quarter.

Comcast Q1 Earnings Beats, Adds Video Users Amid DreamWorks Talks

Comcast ( CMCSA ), reportedly in talks to buy DreamWorks Animation ( DWA ), early Wednesday posted Q1 earnings and revenue that topped views, as the cable TV firm added 53,000 video subscribers. Revenue at NBCUniversal’s film unit slipped from Q1 2015 due to a weaker slate of movies. Comcast is in talks to pay $3 billion , roughly $34 to $35 per share for DreamWorks, Bloomberg and others have reported . DreamWorks has been pursued in the past by Hasbro ( HAS ) and Japan’s SoftBank. DreamWorks owns AwesomenessTV, which provides content for young adults. Verizon Communications ( VZ ) in early April acquired a 24.5% stake in AwesomenessTV for $159 million. Both Comcast and Verizon have been pursuing original content for millennials, a demographic coveted by advertisers. Comcast said Q1 earnings, excluding items, rose 7% from the year-earlier quarter to 87 cents per share, while revenue increased 5.3% to $18.8 billion. Analyst had modeled EPS of 79 cents and revenue of 18.64 billion. Comcast’s video customer additions represent a swing from a loss of 8,000 in Q1 2015. It marked its most video subscriber additions in nine years. Comcast added 438,000 broadband subscribers, up from 407,000 in Q1 2015. Comcast said cable TV revenue climbed 6.7% to $12.2 billion, while NBCU revenue rose 3.9% to $6.86 billion. Filmed entertainment revenue fell 4.3% to $1.38 billion. In the year-earlier period, Universal Film released “Fifty Shades of Grey.” Comcast stock was up more than 1.5% in premarket trading Wednesday, following its earnings release.

What You Need To Know Wednesday: Apple, Boeing, Facebook And The Fed

Facebook ( FB ),  PayPal ( PYPL ) and Boeing ( BA ) report earnings on Wednesday. And with the market digesting Apple ’s ( AAPL ) earnings miss and a Federal Reserve decision on interest rates, it could be an interesting session. Here’s what you need to know: Facebook Facebook is expected to report earnings of 62 cents a share on revenue of $5.25 billion, both up 48% from last year, when it issues results after the close. Investors will pay close attention to the social networking giant’s ad revenue growth and its number of monthly active users, which jumped 14% to 1.6 billion last quarter. They’ll also want any clues about Facebook engagement amid reports that users are posting less and that younger people trend toward Snapchat. Shares breached support at the 50-day line Tuesday after finding support there the prior two sessions. The stock is now about 7% below a cup-with-handle buy point at 117.09. PayPal PayPal also reports after the close. Analysts project that earnings will grow 20% to 35 cents a share while revenue rises 19%to $2.5 billion. PayPal is working with Facebook, Starbucks ( SBUX ) and other big brands to help make customer transactions more seamless. PayPal stock is trading just below buy range from an alternate entry at 40.03. It’s also trading 6% below its all-time high as it works on a larger consolidation pattern. Boeing Boeing reports in the morning. Analysts see EPS falling 7.6% to $1.82 and revenue down 3.2% to $21.43 billion. Watch for comments on pricing for its commercial jets as low fuel prices allow airlines to fly older planes and seek discounts on new ones. Boeing stock is trading 11% below its 52-week high and hasn’t closed above its 200-day line this year. Fed Meeting A two-day Fed meeting ends tomorrow. The widespread expectation is for rates to remain unchanged for now, but Fed-watchers will pay close attention for clues about when the next rate hike may be. Apple Apple’s disappointing Q2 earnings report after the close Tuesday is likely to have a negative impact on the market. The consumer tech giant’s EPS fell 19% to $1.90 while revenue dropped 13% to $50.6 billion. Both missed Wall Street views, and so did Apple’s Q3 revenue outlook. Apple shares fell 8% in late trading Tuesday, with iPhone chip suppliers also selling off.