Verizon Communications (VZ) reported June-quarter adjusted earnings that topped estimates while revenue also came in above Wall Street targets. Verizon stock rose in early trading on Wednesday as it added more postpaid wireless phone subscribers than expected.
In addition, Verizon raised its full-year earnings guidance.
For the second quarter, Verizon earnings were $1.37 per share on an adjusted basis, excluding items. Revenue climbed nearly 11% to $33.8 billion in the three months ended June 30.
A year earlier, Verizon earned $1.18 a share on revenue of $30.4 billion. Analysts had projected Verizon earnings of $1.30 a share on revenue of $32.68 billion.
Verizon stock rose 1.4% to 56.35 on the stock market today.
The company said wireless service revenue rose about 6% to $16.9 billion vs. analyst estimates of $16.8 billion.
Verizon Stock: More Postpaid Phone Subscribers Added Than Expected
Further, Verizon said it added 275,000 postpaid wireless phone subscribers vs. analyst estimates for a 165,000 gain. In the year earlier period, Verizon added 173,000 postpaid wireless phone customers. Verizon stepped up promotions in the June quarter.
In the Verizon earnings report, consumer unit revenue rose 11% to $23.5 billion. Business unit revenue climbed 3.7% to $13.2 billion.
“Our strong first half performance and the momentum in our business gives us the confidence to raise our total wireless service revenue growth guidance to between 3.5% and 4% growth, an update from prior guidance of at least 3%,” said Chief Financial Officer Matt Ellis, in a release. “We are also raising our adjusted EPS guidance to the range of $5.25 to $5.35, an update from prior guidance of $5 to $5.15.”
Despite its dividend, Verizon stock holds a paltry Relative Strength Rating of 20 out of a possible 99. Rival AT&T (T) reports earnings Thursday.
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Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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