Verizon Slips on Earnings Miss Despite Subscriber Growth

Verizon (VZ) shares dropped much than 5% soon aft nan opening doorbell Monday aft nan telecommunications elephantine posted second-quarter net that came successful beneath analysts' expectations contempt adding subscribers to some its net and mobile telephone services.

Revenue grew little than 1% from nan 2nd 4th of fiscal 2023 to $32.8 billion, beneath nan $33.06 cardinal analysts had expected, according to statement estimates compiled by Visible Alpha. Net income slipped to $4.7 cardinal from $4.77 cardinal past year, while analysts had projected profit to turn to $4.84 billion.

Phone, Internet Services Adding Subscribers

Retail postpaid telephone nett additions came successful astatine 148,000, short of nan 265,800 additions analysts had anticipated. Verizon said it had 11.5 cardinal broadband net subscribers astatine nan extremity of nan quarter, which is 17% higher than nan number Verizon reported past year.

Verizon besides said its second-quarter capacity keeps nan institution connected way to meet its full-year projections. The institution expects wireless work gross to turn 2% to 3.5% from past year. Verizon besides projects adjusted earnings per stock (EPS) of $4.50 to $4.70, which would beryllium beneath nan $4.71 Verizon reported for fiscal 2023, while analysts expect adjusted net of $4.59 per share.

"We proceed to build and grow connected our strengths and successes pinch caller products and services, and we are assured that this upward momentum will position america for early growth," Verizon Chief Executive Officer (CEO) Hans Vestberg said.

Shares of nan telecommunications elephantine fell 5.5% to $39.22 arsenic of 9:42 a.m. ET Monday. They are up astir 4% successful 2024.