Verizon Q2 Profit Weak, Revenues Miss View, Backs Outlook; Stock Down

(RTTNews) - Shares of Verizon Communications were losing nearly 6 percent in the early morning trading on the NYSE on Monday after the telecom major maintained its fiscal 2024 outlook after reporting weak profit in its second quarter, in line with Street estimates.

Revenues edged up on strong wireless service revenue and broadband subscriber growth, but missed market estimates.

Verizon Chairman and CEO Hans Vestberg said, "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. ...We continue to build and expand on our strengths and successes with new products and services, and we are confident that this upward momentum will position us for future growth."

For 2024, Verizon continues to expect adjusted earnings per share of $4.50 to $4.70. Analysts on average expect the company to report earnings of $4.58 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

The company continues to project adjusted EBITDA growth of 1.0 percent to 3.0 percent, and total wireless service revenue growth of 2.0 percent to 3.5 percent.

In its second quarter, earnings totaled $4.702 billion or $1.09 per share, compared to $4.766 billion or $1.10 per share in last year's second quarter.

The second-quarter 2024 financial results reflected a pre-tax loss from special items of $355 million.

Adjusted earnings were $1.15 per share for the period, compared to $1.21 per share a year ago. Analysts had expected the company to earn $1.15 per share.

consolidated adjusted EBITDA of $12.3 billion went up from $12.0 billion in 2023.

The company's revenue for the quarter rose 0.6 percent to $32.796 billion from $32.596 billion last year. The Street was looking for revenues of $33.06 billion.

Total wireless service revenue of $19.8 billion grew 3.5 percent year over year. Retail postpaid phone net additions were 148,000, and retail postpaid net additions were 340,000.

Total Verizon Consumer revenue in second-quarter 2024 was $24.9 billion, an increase of 1.5 percent.

The company had 11.5 million total broadband subscribers as of the end of second-quarter 2024, representing a 17.2 percent increase year over year.

On the NYSE, Verizon shares were losing around 6 percent to trade at $39.16.

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