AT&T banked a third-quarter profit of $3.06 billion, or 50 cents per share, compared to its year-ago profit of $2.16 billion, or 56 cents per share. Adjusted earnings for the quarter were 71 cents per share, matching the Street estimate. Sales during the 3-month period climbed 93% to $30.13 billion. In addition, AT&T reported that it has a positive outlook for 2007 and the years ahead.

The shares of AT&T are up 0.49% this morning following the company's earnings report. The security is facing overhead resistance at its 10-day moving average, and has been grinding lower since its September 27 peak. The stock has recently put in a series of lower highs, losing 5.5%. However, the equity continues to hold support at its 10-week and 20-week moving averages, which guided the stock higher from May 2006 through early July 2007.

Options players are confident that the stock will continue its uptrend. Schaeffer's put/call open interest ratio for T stands at 0.72. This reading is lower than 78% of all those taken during the past 52 weeks.