Zacks Analyst Blog Highlights: AT&T, Telmex Internacional, Apple, 3M and United

CHICAGO-- (BUSINESS WIRE) -- Zacks.com Analyst Blog features: AT&T Inc. (NYSE: T), Telmex Internacional (NYSE: TII), Apple (Nasdaq: AAPL), 3M Co. (NYSE: MMM) and United Parcel Services (NYSE: UPS).

The quarter jumped 25

Net income in the quarter jumped 25.9% year over year to $4 billion, driven by continued growth in mobile broadband, gains in IP-based and strategic business services and cost-cutting measures.

The momentum for Apple's (Nasdaq: AAPL) iPhone continues, with highest-ever new activations of 3.2 million (approximately 27% represented by new customers) in the quarter. Post-paid 3G wireless devices also registered solid quarterly net additions with 2.9 million new activations to reach 29.7 million.

Net gain of 1

AT&T registered a net gain of 1.6 million wireless subscribers in the second quarter to reach 90.1 million total subscribers in service, up 14.2% year over year, attributable to strong iPhone activations. This represents an all-time high quarterly net addition in the company's history. Retail post-paid additions in the quarter totaled 496,000 million (32% of total net additions).

Total Wireless revenue climbed 10.3% year over year to $13.2 billion owing to reduced churn, strong data network and continued growth of subscribers. Wireless data revenue increased 27.2% year over year to $936 million, driven by strong handset sales and greater usage of AT&T's mobile broadband network. Both total churn (customer switch) and post-paid churn improved for the sixth consecutive quarter and achieved record lows. Total churn was 1.29% compared with 1.48% in the year-ago quarter, while post-paid churn was 1.01% compared with 1.07% in the year-ago quarter.

Total U-verse TV subscribers reached 2.5 million in the quarter with a net addition of 209,000 customers (up 60% from the year-ago level), as well as continued high broadband and voice attach rates. AT&T U-verse revenues exceeded to $1 billion for the first time, which is more than twice the U-verse revenues in the year-ago quarter. AT&T's total video subscribers, which includes the company's U-verse and bundled satellite customers, reached 4.6 million (representing 17.9% of households served).

Wireline revenues recorded the smallest year-over-year decline in the last five quarters, at 3.7%. Revenues of $15.4 billion in the second quarter was driven by improved consumer and business customer trends.

However, total consumer connections plunged to 44.3 million from 46.3 million in the year-ago quarter, primarily due to a drop in traditional voice access lines, partially offset by increases in U-verse TV and VoIP (Voice over Internet Protocol) connections. AT&T U-verse Voice connections increased by 183,000 in the quarter. The company added 404,000 customers from the year-ago quarter to reach 16 million total broadband connections.

3M Co. (NYSE: MMM) released its earnings results for second quarter of 2010 before the opening bell today, reporting earnings per share of $1.54, beating the Zacks Consensus Estimate of $1.48. With a 28.3% increase in its earnings, the company's sales improved in all its business and geographic regions.

The increase in revenue

The increase in revenue was primarily led by sales growth of 32% in the Electro and Communications division followed by Display and Graphics sales growing at 30% and Industrial and Transportation at 23%. Though sales increased in all geographical regions, sales in emerging economies were a major contributor to revenue growth, increasing by 38% year over year.