AT&T Falls as Phone Financing Plans Weigh on Profit Outlook
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AT&T Inc. shares fell as more customers opted to pay full price for smartphones in exchange for lower bills in the future, putting pressure on profits.
Signups for AT&T’s Next installment plans helped the company boost first-quarter earnings to 71 cents a share, leaving out some items. Analysts had estimated 70 cents on average, according to data compiled by Bloomberg. AT&T records the entire phone sale to Next customers upfront, rather than incurring expenses for selling phones below cost.