AT&T Inc. (NYSE: T) has reported the adjusted earnings per share of 66 cents in the fourth quarter 2016, which is in line with the analysts’ estimates but missed the revenue estimates. AT&T has reported that their fourth quarter revenue of $41.8 billion, was lower than the $42.04 billion as forecasted by consensus revenue by the analysts. In the fourth quarter a year ago, the mobile carrier and internet service provider had reported 63 cents adjusted earnings per share and $42.12 billion in revenue. The net income attributable to the company fell to $2.44 billion, in the fourth quarter 2016 from $4.01 billion a year earlier.

AT&T has added 2.8 million wireless customers during the fourth quarter that includes 1.5 million in the U.S. and 1.3 million in Mexico. It had added 1.1 million branded smartphones and reported its best-ever postpaid phone churn rate at 0.98%. The wireless postpaid churn rate stood at 1.16% in the fourth quarter 2016. T had informed that it added more than 200,000 paying DIRECTV Now customers and 235,000 U.S. DIRECTV satellite TV customers. It has also added 149,000 IP broadband customers.

AT&T had bought DirecTV in 2015 as part of its plans to diversify from its wireless phone business. The company is having stiff competition from smaller rivals T-Mobile U.S. Inc and Sprint Corp. Further, in October 2016, AT&T has signed an agreement to buy Time Warner for more than $85 billion. This is as per the strategy to bring together world-class content with best-in-class distribution which will drive innovation and more choice for the T’s consumers, as well as going further vertical with its offering. Moreover, the deal is expected to boost its media offerings such as over-the-top services and to gain control of cable channels such as HBO and CNN as well as film studio Warner Bros. However, the company is having a lot of pressure for Verizon to create a similar Time Warner merger.

For the full year 2016, AT&T has reported a profit of $12.98 billion, earnings per share of $2.10 and the revenue of $163.79 billion. 2016 is considered the transformational year for AT&T to become the global leader in telecom, media, and technology.

For 2017, AT&T expects the consolidated revenue growth to be in the low-single digits and adjusted earnings per share growth to be in the mid-single digits.

T stock has risen 17.79% in a year (source: Google Finance). According to tipranks.com, 9 analysts has covered the stock while recommend a “Moderate Buy”. T has an average price target of $45.17, which is a further upside of 9.13%.