Telecom giant AT (NYSE: T) surprised investors on Thursday with third-quarter results that sent its stock flying. Not only did AT beat analyst expectations for both revenue and earnings per share, but the company gained more postpaid phone subscribers than it did in the previous quarter and raised its full-year free-cash-flow outlook.

AT stock has been stuck in the doldrums this year as investors fretted about the company's high level of debt, a more competitive wireless industry, and the possibility that AT would fall short of its free-cash-flow target. The company has now put at least some of those concerns to bed.

AT's mobility revenue grew 2% year over year, driven by a 3.7% rise in service revenue and held back by a 3.2% drop in equipment revenue. The company gained 468,000 net postpaid phone subscribers, up from a gain of 326,000 in the second quarter.

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Source Fool.com