AT&T profit beats estimates as Apple iPhone attracts customers

“AT&T Inc., the largest U.S. phone company, posted first-quarter profit that exceeded analysts’ projections after attracting wireless customers with devices like the iPhone,” Amy Thomson reports for Bloomberg.

“AT&T said today that earnings were 59 cents a share, excluding costs tied to new U.S. health-care legislation. That beat the 55-cent average of estimates in a Bloomberg survey,” Thomson reports. “The company, which offers Apple Inc.’s iPhone in the U.S., activated a net new 2.7 million devices last quarter.”

Thomson reports, “AT&T’s exclusive hold on the device has helped the carrier keep customers, with turnover rates dropping to 1.3 percent… The iPhone is ‘extremely important for them, which is a good and a bad thing,’ said Chris King, a Baltimore-based analyst at Stifel Nicolaus & Co. ‘It’s a good thing today because without it, they’d be sunk.’ He advises investors to buy the shares.'”

Full article here.