AT&T Inc. (NYSE:T) raised its revenue guidance for the full year 2014, citing that its business trends for the second quarter have been strong. The second largest wireless communications provider in the United States also reaffirmed its guidance for consolidated margins, EPS growth, capital spending and free cash flow for the year.

AT&T Directv

Full year 2014 guidance

For the full year 2014, AT&T Inc. (NYSE:T) forecast that its revenue will increase around 5%, up from its previous estimate of 4%. The company projected that its adjusted earnings per share will grow at the low-end of the mid-single digit range and consolidated margins will remain stable. Its estimated capital expenditures and free cash flow are in the $21 billion and $11 billion ranges, respectively.

Second quarter expectations

AT&T Inc. (NYSE:T) is scheduled to report its financial results for the second quarter after the market close on July 23rd.

For the second quarter, the telecommunications company is expected to report more than 800,000 postpaid subscriber net gains and 0.95% or lower postpaid churn. It also projected that it will be able to achieve approximately 3.2 million AT&T Next smartphone sales. According to the company, its AT&T Next smartphone sales are expected to account for around 50% of total sales.

AT&T Inc. (NYSE:T) noted that almost 50% of its postpaid smartphone customer base are on no-device-subsidy and its Mobile Share Value pricing plans are expected to increase by two-thirds by the end of the year.

For its wireline business, AT&T Inc. (NYSE:T) is confident that its U-verse video games bundled with broadband will continue to perform well. The company expected a solid performance from its U-verse broadband despite seasonality and fewer migrations from DSL during the second quarter.

AT&T Inc. (NYSE:T) estimated that revenue growth in its strategic business services will be in the mid-teens with continued economic pressure. The company said its wireline margins remained under pressure due to the increase in content costs, fiber expansion and high-speed subscriber growth.

According to the company, its strategic rationale for its proposal to acquire DIRECTV (NASDAQ:DTV) is strengthened by the growing consumer preference for purchasing bundled broadband and pay TV services.

For its Mobility business, AT&T Inc. (NYSE:T) expected its wireless service EBITDA margins to be under pressure due to increased sales activity and strong customer movement to the no-device-subsidy Mobile Share Value plans. The company estimated that its wireless EBITDA margins will be more than 40% for the second quarter and the rest of the year.

Update on AT&T Project VIP Network transformation plan

AT&T Inc. (NYSE:T) said its Project VIP network transformation plan is ahead of schedule. The company said its 4G LTE Network currently covers almost 290 million people, and its Project VIP broadband build is expected to provide fiber to more than 400,000 new business customers by the end of the second quarter.