Verizon Communications Inc (NYSE: VZ) continued to add wireless and broadband subscribers in its second financial quarter signalling solid demand for its services.
Still, quarterly profit of the telecommunications giant came in lower than a year ago that’s pushing the stock down in premarket on Monday.
Verizon reported $32.8 billion in revenue for its second fiscal quarter today on $1.15 a share of adjusted per-share earnings. Analysts, in comparison, were at $33.05 billion and $1.15 per share.
Last month, VZ announced 66.5 cents a share of quarterly dividend. Verizon stock is still up some 4.0% versus the start of 2024.
Verizon Q2 earnings snapshot
Verizon saw its revenue inch up 0.6% to $32.8 billion in Q2. Still, net income declined from $4.8 billion last year to $4.7 billion in the quarter it reported on Monday.
The New York listed firm attributed the weakness to a $355 million pretax loss in the second quarter. Part of it was related to acquisitions including Tracfone while the rest was due to a mark-to-market adjustment for pension liabilities.
Hans Vestberg – the chief executive of Verizon Communications also expressed confidence in the success of his company’s new products and services today that he said will drive “upward momentum” and position VZ for future growth.
Verizon added 391,000 broadband subscribers to end the second quarter with 11.5 million in total – a 17% growth versus last year. Retail postpaid net additions and total fixed wireless net additions stood at 340,000 and 391,000 in Q2, as per the press release on Monday.
Verizon issues upbeat guidance for 2024
Verizon stock is in the red in premarket today even though it forecasts adjusted per-share earnings to fall between $4.50 to $4.70 in 2024.
The mid-point of that range sits slightly above the consensus of $4.57 per share. According to chief executive Hans Vestberg:
The sequential and year over year improvements in the second quarter were a reflection of operational excellence and the moves we made to bring choice, value and control to our customers’ lives.
VZ noted a 3.5% increase in its total wireless service revenue in the recently concluded quarter. It expects the same (3.5% growth) in wireless service revenue for the full year as well. Verizon shares currently pay a rather lucrative 6.39% dividend yield.
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