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AT&T reports earnings of 72 cents vs. EPS estimate of 72 cents per share

AT&T delivered its quarterly results on Thursday after the market close, with revenue missing analysts' estimates.

The telecommunications corporation posted fiscal second-quarter earnings per share of 72 cents, compared to 70 cents a share in the year-earlier period.

Consolidated revenue for the quarter came in at $40.52 billion, up more than 22 percent from the comparable year ago figure of $33.02 billion.

Analysts expected AT&T to report earnings of 72 cents per share on revenue of $40.62 billion, according to a Thomson Reuters consensus estimate.

Shares drifted downward in after-hours trading following the earnings report.

Revenue for AT&T's entertainment group segment jumped to $12.71 billion from $5.78 billion in the year-earlier period. The increase was primarily driven by large revenue gains in the company's video entertainment operations.

"One year after our acquisition of DirecTV, the success of the integration has exceeded our expectations," said Randall Stephenson, AT&T CEO. "Cost synergies are ahead of target, we've added nearly 1 million DirecTV subscribers since the acquisition, and our new video streaming services are scheduled to roll out later this year."

Earlier this month, Citi lowered its rating for AT&T to "neutral" from "buy," citing a crowded dividend trade that may reverse if interest rates rebound. AT&T's dividend yield stands at 4.53 percent.

Shares of AT&T have climbed 23 percent so far in 2016.

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