AT&T's Wireless Ways Win: Fool by Numbers

On Jan. 25, AT&T (NYSE: T  ) released fourth-quarter earnings for the period ended Dec. 31, 2006.

• Revenues increased by 23.1% as subscriber gains in wireless, strong data transport results, and solid regional business revenue growth boosted results.
• The company completed the acquisition of BellSouth, making it a strong player in the wireless market.
• Wireless data revenues grew 68.6% and wireless service revenues were up 13.1% for the quarter.
• AT&T is rated a three-star stock in Motley Fool CAPS.

(Figures in millions, except per-share data)

Income Statement Highlights

	Q4 2006	Q4 2005	Change
Sales	$15,891	$12,909	23.1%
Net Profit	$1,938	$1,655	17.1%
EPS	$0.50	$0.46	8.7%
Diluted Shares	3,911	3,580	9.2%

Get back to basics with a look at the income statement.

Margin Checkup

	Q4 2006	Q4 2005	Change*
Gross Margin	57.8%	54.6%	3.2
Operating Margin	16.2%	8.8%	7.4
Net Margin	12.2%	12.8%	(0.6)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets	Q4 2006	Q4 2005	Change
Cash + ST Invest.	$2,418	$1,224	97.5%
Accounts Rec.	$16,194	$9,351	73.2%

Liabilities	Q4 2006	Q4 2005	Change
Accounts Payable*	$25,508	$17,088	49.3%
Long-Term Debt	$51,169	$26,115	95.9%

*Also includes accrued liabilities.

Learn the ways of the balance sheet.

Cash Flow Highlights

	YTD 2006	YTD 2005	Change
Cash From Ops.	$15,615	$12,974	20.4%
Capital Expenditures	$8,320	$5,576	49.2%
Free Cash Flow	$7,295	$7,398	(1.4%)

Find out why Fools always follow the money.

Related Companies:

• Verizon Communications (NYSE: VZ  )
• Sprint Nextel (NYSE: S  )
• Qwest (NYSE: Q  )
• Alltel (NYSE: AT  )

Related Foolishness:

• Foolish Forecast: Ever-Efficient AT&T
• AT&T Adds E-Business Bulk
• The Best Blue Chip for 2007

AT&T is a former Motley Fool Stock Advisor recommendation. Learn what our current recommendations are by taking a free 30-day trial today. Alltel used to be an Income Investor pick.

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.