Verizon Communications Inc. (NYSE: VZ), a leading provider of wireless and broadband services, continued to grow its subscriber base in the second quarter. This indicates a solid demand for their products.
The stock fell in the premarket Monday due to the lower quarterly profits of the telecoms giant.
Verizon today reported revenue of $32.8 billion for the second quarter fiscal year, with adjusted earnings per share at $1.15. Comparatively, analysts were expecting $33,05 billion in revenue and $1.15 a share.
VZ declared a quarterly dividend of 66.5 cents per share last month. Verizon’s stock has risen by 4.0% since the beginning of 2024.
Verizon Q2 Earnings Snapshot
Verizon’s revenue increased by 0.6% in Q2 to $32.8 Billion. Despite this, Verizon’s net profit fell from $4.8 billion to $4.7 billion during the reported quarter.
New York-listed firm attributes the weak performance to the $355 million loss before taxes in the second quarter. Tracfone was one of the acquisitions, while others were due to pension liability mark-to market adjustments.
Hans Vestberg, the CEO of Verizon Communications expressed his confidence today in the new products and service offerings of the company that will “upward momentum”, and help position VZ to grow.
Verizon has added 391,000 new broadband customers to its total of 11.5 million subscribers, a growth of 17% compared with last year. According to the company’s press release, retail postpaid and fixed wireless net adds were respectively 340,000 and 391,000 during Q2.
Verizon gives optimistic guidance for 2024
Verizon shares are down in today’s premarket despite the fact that it expects earnings per share to drop between $4.50 and $4.70 by 2024.
According to Hans Vestberg, chief executive officer: Hans Vestberg, chief executive Hans Vestberg said:
Our efforts to provide our customers with more choice, better value and greater control were evident in both the sequential and annual improvements we saw during the second quarter.
VZ reported a 3,5% growth in total revenue from wireless services in the quarter just ended. The company expects to see the same growth (3.5%) for wireless service revenues throughout the year. Verizon’s shares are currently paying a 6.39% yield, which is a very lucrative dividend.
As new information becomes available, this post Verizon suffers a loss in profit during Q2 despite a rise in subscribers may change.
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