Verizon Communications, Inc. (NYSE: VZ)
Telecom giant Verizon Communications beat estimates in its second-quarter revenue and profit, but missed on subscriber additions.
During the quarter, the telco added 199,000 wireless monthly subscribers, missing estimate of 210,000 additions from UBS and Cowen analysts.
The results come days before the company bids farewell to its current Chief Executive Officer Lowell McAdam, who will be replaced by Hans Vestberg on August 1.
Mr. Vestberg is the current Chief Technology Officer of the company, and is expected to steer the wireless into the world of 5G network technology amid growing competition in the industry.
Shares of the New York-based company rose marginally to $51.11 in the regular trading session on Tuesday. The shares have dropped 4.1% in the last twelve months, while the Standard & Poor’s 500 has gained 5%.
VZ Earnings & Outlook
The telecom services provider posted net income of $4.246 billion, or $1.00 per share for the period, compared with $4.246 billion, or $1.07 per share in last year’s second quarter.
Net sales stood at $32.2 billion, an increase of 5.4% from $30.55 billion in the second quarter of the previous year.
The telco reported adjusted earnings of $1.20, finishing above analyst expectations of $1.14 adjusted earnings per share on net sales of $31.78 billion.
Verizon Communications CEO Comments
“Verizon is extremely well-positioned for the future. Our financial and operating results for the first half of 2018 were strong, as evidenced by service revenue, earnings and operating cash flow growth delivered in a highly competitive marketplace,” commented Lowell McAdam.
Verizon Communications, Inc. Company Profile
Verizon Communications, Inc. engages in the provision of wireless communications services and products to businesses, consumers, and government agencies globally.
The company operates through two segments: Wireless and Wireline.
The Wireless segment offers wireless data and voice services; Internet access on a variety of tablets and notebook computers; location-based, multimedia, and business-focused services, as well as global travel services.
In addition, it offers network access services to deliver a variety of Internet of Things services and products.
Further, the segment offers wireless devices, such as basic phones and smartphones, tablets and wearables, among other Internet access gadgets.
The Wireline segment provides traditional circuit-based network services and products; networking solutions, consisting of private Internet protocol, software-defined wide area network, Ethernet, as well as cybersecurity services; long distance, local exchange, toll-free, and regional calling services.
In addition, the segment offers premises equipment, as well as site, installation, and maintenance services; broadband, data, local dial tone, and voice services primarily to wireless, local, and long distance carriers; networking and voice products, IP networking, Fios services, voice solutions, managed, and security information technology services for medium and small businesses, and governmental agencies.
Further, this segment offers conferencing and voice messaging services; customer contact center services, residential fixed connectivity services, such as voice, Internet, and TV services, under the Fios brand name.
Verizon Communications Inc. was founded in 1983 and its headquarters are based in New York, NY. –Reuters