Verizon Communications missed quarterly revenue estimates on Monday due to slow phone upgrades in the United States, taking the shine off strong growth in wireless subscribers and sending shares of the telecom firm down 6.28% in morning trading.
Total operating revenue of $32.8 billion was 0.6% higher than a year ago. Consolidated net income of $4.7 billion was down slightly from $4.8 billion one year ago. Adjusted earnings of $1.15 a share were in line with expectations. Last year, Verizon reported second-quarter adjusted earnings of $1.21 a share.
Verizon’s wireless service revenue rose 3.5% from a year ago, to $19.8 billion. Fixed wireless revenue of $514 million was more than $200 million higher than the year-ago period.
The telecommunications company said second-quarter results reflected a $355 million pretax loss from special items, including $219 million from the amortization of intangible assets related to Tracfone and other acquisitions, and a $136 million charge associated with a mark-to-market adjustment for pension liabilities.
“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,” Verizon’s Chairman and CEO Hans Vestberg said.
Verizon reported retail postpaid phone net additions of 148,000; retail postpaid net additions of 340,000; and total fixed wireless net additions of 378,000. Total broadband net additions of 391,000 during the quarter represented the eighth-straight quarter with more than 375,000 broadband net additions.
Verizon ended the second quarter with 11.5 million total broadband subscribers, a 17% increase from the year-ago period.
For the first half of 2024, cash flow from operations of $16.6 billion declined from $18.0 billion in the first half of 2023, because of higher cash taxes, higher interest expense primarily related to a reduction in capitalized interest, and higher interest rates.
For the full year 2024, Verizon said it expects its total wireless service revenue to increase 2% to 3.5%; adjusted Ebitda growth of 1% to 3%; adjusted earnings of $4.50 to $4.70 a share; and capital expenditures of $17 billion to $17.5 billion.
