08:43 AM EDT, 04/24/2024 (MT Newswires) -- AT&T ( T ) on Wednesday recorded lower first-quarter results but earnings topped market estimates, while the telecommunication giant added more postpaid phone subscribers than analysts expected.

The company's adjusted earnings declined to $0.55 per share for the March quarter from $0.60 a year earlier, but were ahead of the Capital IQ-polled consensus of $0.53. Revenue edged down to $30.03 billion from $30.14 billion, falling short of the Street's view for $30.53 billion.

Shares of AT&T ( T ) were up 4.1% in recent premarket activity.

"Our results this quarter reflect continued strong growth in our mobility and consumer wireline connectivity businesses, which represent about 80% of our total revenues," Chief Executive John Stankey said in a statement. "We achieved a record-low first-quarter postpaid phone churn, grew consumer broadband subscribers for the third consecutive quarter, and expanded margins in mobility and consumer wireline."

Communications revenue nudged 1% lower to $28.86 billion as gains in mobility and consumer wirelines were offset by a decline in business wireline. Within mobility, service revenue rose 3.3% to $15.99 billion, while equipment revenue dropped 9.8% to 44.6 billion due to lower sales volumes. Consumer wireline inclined 3.4% to $3.35 billion, boosted by broadband gains. Business wireline revenue fell 7.8% to $4.91 billion due to reduced demand for legacy voice and data services.

AT&T ( T ) added 349,000 net postpaid phone subscribers in the quarter, down from 424,000 last year. The consensus of 13 analysts on Visible Alpha was for a 308,000 increase, while the company added 526,000 subscribers in the previous three-month period.

Total operating expenses inched up to $24.18 billion from $24.14 billion in the 2023 quarter. The slight increase was due to higher depreciation related to the company's continued investment in fiber and 5G technology, accelerated depreciation on wireless network equipment and related restructuring charges.

"We're also delivering on our commitment to grow and improve the quality and cadence of free cash flow, which increased by more than $2 billion year over year," according to Stankey. "This consistent, solid performance driven by our investment-led strategy gives us confidence to re-affirm our full-year consolidated financial guidance."

AT&T ( T ) continues to expect adjusted EPS to be in a range of $2.15 to $2.25 for 2024, while the Street is looking for $2.20. The company also reiterated its wireless service and broadband revenue growth forecasts of 3% and 7% or more, respectively.

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