Shares of telecom titan AT&T (NYSE:T) fell as much as 1.9% after hours, following the release of results for the second uarter of 2014.

AT&T saw revenues rise 1.6% year over year to $32.6 billion. Adjusted earnings fell 7.5%, landing at $0.62 per share.

Analysts were looking for more, with consensus estimates pointing to earnings of $0.63 per share on roughly $33.2 billion in top-line sales.

The company added 700,000 net new subscribers in the postpaid wireless segment, citing low customer churn as a growth driver. The company actually added 1.6 million net postpaid smartphones in the quarter, replacing the loss of 900,000 feature phone users.

Wireless operating margins came in at 24.1%, down from 27.1% in the year-ago period. The popular AT&T Next upgrade program is an effective revenue booster but puts pressure on operating margins.

On the hardwired side, AT&T added a net of 488,000 new broadband subscribers and 190,000 U-Verse TV service customers.

Management held full-year 2014 guidance figures steady, expecting 5% annual revenue growth and stable overall margins. Adjusted earnings should grow by 3% to 4%.

"The quarter was marked by several transformative moves to grow our wireless, broadband, and video services," said AT&T CEO Randall Stephenson in a prepared statement. "Our move to simple pricing and no-device-subsidy plans is repositioning the wireless business model, resulting in our best postpaid net adds in nearly five years and our lowest-ever postpaid churn."

Anders Bylund has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Apple. Try any of our Foolish newsletter services free for 30 days.

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