AT&T earnings beat Street but revenue trails

AT&T CFO: DirecTV 'everything we expected and more'

AT&T delivered quarterly earnings that beat analysts' expectations but posted revenue that came up short of expectations on Thursday.

The telecom giant posted third-quarter earnings of 74 cents per share, up from 63 cents a share in the year-earlier period. Revenue rose to $39.09 billion, up from $32.96 billion in the same timeframe.

An AT&T store in New York.
AT&T says Q3 consensus revenue estimates "inflated"

Wall Street had expected the company to deliver quarterly earnings per share of 69 cents on revenue of $40.42 billion, according to consensus estimates from Thompson Reuters.

Wednesday, AT&T told investors that third-quarter revenue could miss expectations because it says analysts have not been calculating the quarter's value of the DirecTV business. It acquired the unit in a $48 billion July deal.

"When you look at the overall DirecTV impact, it was very positive," CFO John Stephens told CNBC's "Squawk Box" on Friday. "The business is turning out to be everything we expected, and quite frankly, more."

Stephens also said that AT&T will be looking to "mobilize" everything, including its video products gained from the acquisition.

Source: AT&T earnings presentation

AT&T's shares were up nearly 2 percent in after-hours trading. The wireless carrier's stock fell nearly 1.6 percent in the last year but is up 1.1 percent year to date.

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— CNBC's Julia Boorstin and Reuters contributed to this article.