AT&T Inc. (NYSE:T), the second wireless carrier in the United States reported its financial results for the first quarter of fiscal 2014 after hours today. The company said its adjusted earnings for the quarter were $3.7 billion or $0.70 per share, which meets the consensus estimate of Wall Street analysts.

The stock price of AT&T Inc. (NYSE:T) declined from its closing price of $36.29 per share to $35.56 per share, down by more than 2% during the extended trading hours today.

Details of financial results

Excluding special items ($0.01 related to cost of its Leap Wireless transaction), the wireless carrier should have earned $0.71 per share. During the same period a year earlier, AT&T Inc. (NYSE:T) delivered $0.67 per share.

During the three months period that ended March 31, the company said its consolidated revenues increased 3.6% to $3.2 billion year-over-year. Its operating expenses rose from $25.4 billion to $26.2 billion and its operating income climbed from $5.9 billion to $6.3 billion. Its operating margin was 19.3%.

According to AT&T Inc. (NYSE:T) 1,062,000 wireless subscribers were added including 625,000 smartphones and tablets in post-paid plans during the quarter. The company said it has almost 60 million total branded smartphone subscribers. It has 1.3 million total U-verse subscribers.

Customers moving off device subsidies

In a statement, Randall Stephenson, chairman and CEO of AT&T Inc. (NYSE:T) said, “We have been working very deliberately to transform our business, and this quarter you really start to see the benefits. Customers really like the new mobility value proposition and are choosing to move off device subsidies to simpler pricing while at the same time, they are continuing to move to smartphones with larger data plans.”

Shares buyback

AT&T Inc. (NYSE:T) repurchased 37 million of its own shares worth $1.2 billion during the quarter. The board of directors of the company also approved the repurchase of additional 300 million shares with no expiration date. The company will be able to buy back 425 million shares under its repurchase authorization.

2014 Outlook

For the full year 2014, the company estimated that its consolidated revenue will increase by 4% or more, stable consolidated margins, and mid-single digit growth in adjusted earnings per share including Leap operational pressure. Its capital expenditures will remain in the range of $21 billion and free cash flow at around $11 billion.