AT&T Inc. (T – Free Report) just released its first quarter fiscal 2017 financial results, posting adjusted earnings of 74 cents per share and revenues of $39.4 billion. Currently, T is a Zacks Rank #3 (Hold), and is up 1% to $40.34 per share in trading shortly after its earnings report was released.

Matched earnings estimates. The company posted adjusted earnings of 74 cents per share, matching the Zacks Consensus Estimate of 74 cents per share (this number excludes 18 cents from non-recurring items). Net income attributable to AT&T was $3.5 billion.

Missed revenue estimates. The company saw revenue figures of $39.4 billion, just falling short of our consensus estimate of $40.660 billion.

During Q1, AT&T reported 2.7 million wireless net adds, with 2.1 million net adds in the U.S., driven by prepaid and connected devices, and 633,000 net adds in Mexico.

The company also noted that this was the best-ever first-quarter for postpaid phone churn, coming in at 0.90%, and AT&T said that there are now 4.6 million AT&T Fiber customers, with plans to add 2 million this year.

Looking ahead, AT&T is updating its 2017 guidance. The telecom giant now expects adjusted EPS growth in the mid-single digit range and adjusted operating margin expansion, with free cash flow in the $18 billion range.

“In a very competitive quarter, we continued to execute on our goals of driving efficiencies in our business while growing adjusted earnings per share. But just as important, the strategic moves we’ve made over the last few months to expand our wireless capacity and fortify our 5G leadership will be felt for years to come,” said Randall Stephenson, AT&T Chairman and CEO.

Here’s a graph that looks at AT&T’s price, consensus, and EPS surprise:

AT&T Inc. Price, Consensus and EPS Surprise

AT&T Inc. Price, Consensus and EPS Surprise | AT&T Inc. Quote

AT&T Inc. is a premier telecom company. Its subsidiaries and affiliates, AT&T operating companies, are the providers of AT&T services in the U.S. and around the world. Among their offerings are the world’s most advanced IP-based business communications services, the nation’s fastest 3G network and the best wireless coverage worldwide, and the nation’s leading high speed Internet access and voice services. As part of their three-screen integration strategy, AT&T operating companies are expanding their TV entertainment offerings.

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