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AT&T Reports Mixed Q2 Results in First Earnings After Time Warner Acquisition

Company misses revenue targets, but surpasses on earnings-per-share

AT&T reported second-quarter earnings on Tuesday that missed Wall Street expectations on revenue but surpassed them on an earnings-per-share basis.

The telecommunications company said in its quarterly filing that diluted earnings per share were 91┬ácents, above analysts’ consensus expectations of 85 cents per share, according to forecasts on Yahoo Finance. However, revenue for the second quarter was $39 billion, below the $39.4 billion analysts on Wall Street projected.

AT&T’s stock dropped 1.2 percent to $31.30 per share in after-hours trading.

This is the first quarterly earnings since AT&T completed its $84.5 billion acquisition of Time Warner, though it’s still being appealed by the U.S. Department of Justice. AT&T adds a bevy of assets with the deal, including HBO, CNN, and Warner Bros., as the corporate battle for content ramps up. The earnings include 16 days of WarnerMedia results.

AT&T added 342,000 DirecTV Now subscribers, offsetting a loss of 262,000 traditional TV customers. DirecTV Now hit a total of 1.8 million customers for its streaming service, as AT&T works to compete with powerhouses like Netflix, Amazon, and Hulu.

The Dallas-based company highlighted “Ocean’s 8,” one of the Warner Bros. films released during the quarter, for grossing more than $250 million internationally. AT&T also pointed to HBO’s 108 Emmy nominations, second only to Netflix, in its release.