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Shares of AT&T (NYSE: T) were moving higher today. Investors applauded its latest quarterly results as the telecom giant easily beat expectations on the top and bottom lines.

As a result, the telecom stock was up 2% as of 1:12 p.m. ET after gaining as much as 3.2% earlier in the session.

AT&T is on the mend

The first-quarter results show AT&T fulfilling its promise of focusing on its core telecom business and avoiding distractions like the media mergers that have crushed the stock over the last decade, and its performance in the quarter was solid.

Revenue in the quarter was $30 billion, ticking down by 0.4% as a decline in equipment and wireline revenue offset 3.3% growth in the mobility service revenue to $16 billion. However, the overall revenue number was well ahead of estimates at $28.7 billion.

AT&T also reported 348,000 net new monthly paid phone customers, easily beating rival Verizon Communications, which posted a decline in subscribers in that key category. AT&T also said its postpaid phone churn was down to 0.72%, which it believed was the best in the industry.

The company continued to grow its broadband business with 252,000 AT&T Fiber net adds and its consumer broadband business grew revenue 7.7% to $2.7 billion.

On the bottom line, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose from $10.6 billion to $11 billion, while adjusted earnings per share (EPS) fell from $0.60 to $0.55, but still beat expectations at $0.50.

The discrepancy between EBITDA and adjusted EPS seemed to relate to an increase in depreciation expense and a decline in other income.

"Customers are choosing AT&T and staying with us," CEO John Stankey said. "We achieved a record-low first-quarter postpaid phone churn, grew consumer broadband subscribers for the third consecutive quarter, and expanded margins in Mobility and Consumer Wireline."

What's next for AT&T

AT&T reaffirmed its guidance for the year, calling for wireless service revenue growth of 3%, broadband revenue growth of at least 7%, and adjusted EBITDA growth of around 3%.

It also continues to see adjusted EPS of $2.15 to $2.25 and expects a return to adjusted EPS growth next year.

Given the beats on the top and bottom lines and the strong postpaid net phone additions, it's not surprising to see the stock moving higher on the news.

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Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool recommends Verizon Communications. The Motley Fool has a disclosure policy.

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