Verizon Tops Earnings Expectations, Points to Traction in 5G -- MarketWatch
21 July 2021 - 11:01PM
Dow Jones News
By Emily Bary
Verizon Communications Inc. topped second-quarter earnings and
revenue expectations Wednesday as more consumers moved to get 5G
phones and unlimited plans.
The company generated net income of $5.95 billion, or $1.40 a
share, compared with $4.84 billion, or $1.13 a share, a year
earlier. On an adjusted basis, Verizon earned $1.37 a share, up
from $1.18 a share a year prior and ahead of the FactSet consensus,
which called for $1.30 a share.
Verizon's operating revenue for the quarter rose to $33.76
billion from $30.45 billion, while analysts tracked by FactSet had
been expecting $32.77 billion on average. The company saw $23.5
billion in consumer revenue, $7.8 billion in business revenue, and
$2.1 billion in media revenue.
In the consumer business, Verizon recorded retail postpaid phone
churn of 0.65%, one of its lowest rates yet as a limited number of
consumers switched wireless providers. Verizon also saw 350,000
retail postpaid net additions, including 197,000 phone net
additions, and said that about 20% of wireless phone customers in
the consumer segment are now using 5G phones.
The telecommunications company now expects total wireless
service revenue growth of 3.5% to 4.0% for the full fiscal year,
whereas it was previously calling for growth of at least 3%.
Verizon withdrew its prior expectation for service and other
revenue growth as it recently announced plans to sell its Verizon
Media business, with the deal expected to close in the third
quarter.
Verizon now projects full-year adjusted earnings per share of
$5.25 to $5.35, up from its prior expectation for $5.00 to $5.15.
The company continues to expect 2021 capital spending of $17.5
billion to $18.5 billion.
-Emily Bary; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
July 21, 2021 08:51 ET (12:51 GMT)
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