AT&T today announced its earnings for the second quarter of the year. The company did meet analysts expectations on the bottom line, with an EPS of $0.91, whereas the expectation was $0.85. However, it did miss on revenue, bringing in $38.99 billion, while analysts were expecting $39.39 billion for the quarter. EPS was up from $0.79 compared to the year prior, which is a good thing for AT&T. Cash from operations were $10.2 billion, up 17.5-percent from the year prior. Capital Expenditures were $5.1 billion and free cash flow was $5.1 billion which is up 46.4-percent in the quarter.
On the wireless side of things, AT&T had 3.8 million total wireless net adds. 3.1 million of those were in the US which was driven by connected devices and prepaid devices. Around 756,000 were in Mexico, and there were a total of 219,000 video net adds in the quarter (that includes the US and Latin America). There were 46,000 postpaid phone net adds in the quarter, which continues AT&T's strong year-over-year improvement. Prepaid growth continued with 356,000 phone net adds. It also added nearly 400,000 branded smartphones to its base. And churn for the postpaid side of the business was 0.82% which is pretty high and means that there were more customers coming to AT&T than leaving.
Now on the entertainment side of things, AT&T posted 342,000 net adds for DIRECTV NOW, which brings the total to more than 1.8 million subscribers. 80,000 total video net adds, 76,000 IP broadband net adds, and it has more than nine million customer locations with Fiber. AdWorks also continued its double-digit revenue growth. Since AT&T closed the acquisition of Time Warner on June 14, its numbers are also included this time around. HBO and Turner is seeing subscription revenue growth year-over-year, Turner ad revenues were up three percent. There are a record number of series in production at Warner Bros., and 166 Primetime Emmy Awards nominations for Time Warner.
After AT&T announced its earnings for the second quarter, the company's stock did dip in after hours trading, but only for a few minutes. The stock is coming back and will likely spike tomorrow when the market opens. This is because of the great outlook and guidance that AT&T provided, even though it did miss on revenue, but only slightly.