AT&T earnings beat expectations; growth disappoints

Instant reaction to AT&T earnings

AT&T reported quarterly earnings and revenue that beat analysts' expectations on Tuesday, but the No. 2 U.S. mobile provider's wireless subscriber growth fell short of Wall Street expectations.

The company posted a net increase in total wireless subscribers of 809,000 in the fourth quarter, short of analyst expectations of 1.25 million.

After the earnings announcement, the company's shares climbed 1 percent in extended-hours trading before easing back 1.5 percent.

An employee helps a customer at an AT&T Inc. store in Manhattan Beach, California, July 22, 2013.
Patrick T. Fallon | Bloomberg | Getty Images

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The company posted fourth-quarter earnings excluding items of 53 cents per share, up from 44 cents a share in the year-earlier period.

Revenue increased to $33.16 billion from $32.61 billion a year ago.

Analysts had expected the company to report earnings excluding items of 50 cents a share on $33.06 billion in revenue, according to a consensus estimate from Thomson Reuters.

—By CNBC.com with Reuters