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Strong Signals in Wireless
by Megan Barnett
Jan 24 2008
Jan 24 2008
AT&T and Nokia results suggest mobile business is immune to slowdown.
Industry:
Telecomm
Summary:
The Company provides technologies, products and services that make a range of mobile experiences possible.
Primary executive:
Thomas J. Lynch, Subsidiary CEO/Subsidiary President/Executive VP
Industry:
Telecomm
Summary:
The Company offers telecommunications services and products to consumers in U.S.
Primary executive:
Randall L. Stephenson,
Industry:
Telecomm
Summary:
The Company is a manufacturer of mobile devices with services and software that enable people to experience music, navigation, …
Primary executive:
Olli-Pekka Kallasvuo,
Randall L. Stephenson
Industry:
Telecomm
Biography:
Mr. Stephenson is responsible for all wireline operations at AT&T. He was appointed to this position at SBC (which acquired …
The wireless industry so far seems to be untouched by the recent economic downturn.
AT&T, the biggest phone company in the U.S., announced earnings that largely met expectations and it reiterated its 2008 sales outlook.
Strength in its wireless business helped AT&T nearly double sales for the fourth quarter to $30.5 billion. Net income grew 62 percent to $3.1 billion, or 71 cents per share, excluding certain unusual items. The company's results were favorably impacted by savings from its acquisition of BellSouth in December 2006.
Being the exclusive carrier for the Apple iPhone continues to be a boon to AT&T as well. The company added 2.7 million net new subscribers, which was more than many analysts had forecast.
It expects it wireless-services business and its overall earnings per share to grow by double digits during 2008. Earlier this month, AT&T chief executiveRandall Stephenson had warned about softness in the consumer sector, but it appears to be isolated to its landline business so far.
On the hardware side of the business, demand is similarly strong.Nokia, which is the world's biggest maker of mobile phones, said net profit rose 44 percent during the fourth quarter to $2.7 billion. Sales rose 34 percent. The results beat expectations.
In Helsinki trading today, shares of the Finland-based company surged 13 percent.
"The stock has been depressed on the belief of a weak consumer globally, but Nokia seems immune to a slowdown, saying it's business as usual," Niklas Lund, a fund manager at Alandsbanken Asset Management in Helsinki, told Bloomberg.
The results are in sharp contrast to those from struggling competitorMotorola. Nokia captured more market share from Motorola, which warned yesterday it expects to record a loss during the fourth quarter.
Also on Portfolio.com
Charging Ahead
AT&T, the biggest phone company in the U.S., announced earnings that largely met expectations and it reiterated its 2008 sales outlook.Strength in its wireless business helped AT&T nearly double sales for the fourth quarter to $30.5 billion. Net income grew 62 percent to $3.1 billion, or 71 cents per share, excluding certain unusual items. The company's results were favorably impacted by savings from its acquisition of BellSouth in December 2006.
Being the exclusive carrier for the Apple iPhone continues to be a boon to AT&T as well. The company added 2.7 million net new subscribers, which was more than many analysts had forecast.
It expects it wireless-services business and its overall earnings per share to grow by double digits during 2008. Earlier this month, AT&T chief executive
Randall Stephenson had warned about softness in the consumer sector, but it appears to be isolated to its landline business so far.On the hardware side of the business, demand is similarly strong.
Nokia, which is the world's biggest maker of mobile phones, said net profit rose 44 percent during the fourth quarter to $2.7 billion. Sales rose 34 percent. The results beat expectations.In Helsinki trading today, shares of the Finland-based company surged 13 percent.
"The stock has been depressed on the belief of a weak consumer globally, but Nokia seems immune to a slowdown, saying it's business as usual," Niklas Lund, a fund manager at Alandsbanken Asset Management in Helsinki, told Bloomberg.
The results are in sharp contrast to those from struggling competitor
Motorola. Nokia captured more market share from Motorola, which warned yesterday it expects to record a loss during the fourth quarter.Also on Portfolio.com
Charging Ahead
Mobile