So, in a quarter when AT&T sold more smartphones—10.2 million—than any American carrier ever has in one quarter, how were numbers so dismal?
High pension costs and the impact of Hurricane Sandy increased costs and decreased earnings in the fourth quarter. While revenue was higher than expected from the cell phone and subscription service sales, high costs prevented high profitability. Hurricane Sandy brought with it tons of damage costs for AT&T, as well as decreased sales. High pension costs also added to the mountain of costs AT&T endured.
However, in the coming quarters, it will be very important for AT&T to increase their sales to new wireless customers. Home security will also be a critical field for them to gain new revenue streams. In a mostly tapped wireless market, it will be difficult for AT&T in the coming months. For now, AT&T hasn’t earned a place in my portfolio.
The article AT&T Reports Earnings: What You Need to Know originally appeared on Fool.com and is written by Michael Nolan.
Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.