AT&T Inc. (NYSE:T) earnings weren’t quite as good as the market expected, judging by after-market trends directly after the company released its numbers for the first quarter of 2014. The firm showed earnings of 71 cents per share on revenue of $32.5 billion. The company’s stock traded down by 0.88% right after it revealed a small beat in the three months through March 31. In Tuesday’s trading the company gained 0.62% to finish trading at $36.29.

AT&T

Analysts were expecting AT&T to record earnings of 69 cents per share according to consensus estimates gathered by Businessweek. The 21 analysts surveyed by the news outlet were looking for revenue to total $32.3 billion in the first quarter of the year. In the same three months of 2013 AT&T Inc. (NYSE:T) earned 64 cents per share on revenue totaling $31.4 billion.

AT&T earnings disappoint

Despite the small beats in its headline numbers, overall results from AT&T Inc. (NYSE:T) seemed to disappoint investors. The company’s stock fell consistently in aftermarket trading in the wake of its earnings release marking that disapproval in cash. The offending facts may be buried in the company’s wireless service revenue. Growth in the key area slowed in the first quarter of the year, lowering the company’s overall prospects.

Beside the reports of its best revenue growth in years and its increased outlook for the remainder of 2014 stood the wireless services figures. Revenue in the area grew just 2.2% from last year, down from 4.4% in the fourth quarter of 2013. Given the increasing price competitiveness in the wireless sector that decline may promise lower returns in the future, and may explain the reaction of the market.

AT&T announces new video streaming project

The AT&T Inc. (NYSE:T) earnings report arrived on the same day that the company revealed a video streaming partnership it had formed with the Chernin Group. The service, which seems designed to compete with Netflix Inc (NASDAQ:NFLX) is likely to be expensive, and its value is questionable.

There is little information about the AT&T Inc. (NYSE:T) streaming service readily available, so its likelihood of success is difficult to quantify. What we do know is that the company is trying to improve the quality of its service in order to attract more customers. As long as the current price cuts don’t impact the bottom line too much, investors should be relieved that the firm is trying something to boost customer response.