Verizon (VZ) shares dropped over 5% shortly after the opening bell on Monday following the telecommunications giant’s second-quarter earnings report, which fell short of analysts’ expectations despite an increase in subscribers for both its internet and mobile phone services.
Revenue grew less than 1% year-over-year to $32.8 billion, missing the $33.06 billion consensus estimate compiled by Visible Alpha. Net income decreased to $4.7 billion from $4.77 billion last year, while analysts had projected a rise to $4.84 billion.
Retail postpaid phone net additions totaled 148,000, below the 265,800 additions anticipated by analysts. Verizon reported having 11.5 million broadband internet subscribers at the end of the quarter, a 17% increase from the previous year.
Verizon stated that its second-quarter performance aligns with its full-year projections. The company expects wireless service revenue to grow between 2% and 3.5% from last year. Verizon also projects adjusted earnings per share (EPS) of $4.50 to $4.70, compared to $4.71 for fiscal 2023, while analysts expect adjusted earnings of $4.59 per share.
“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,” said Verizon Chief Executive Officer Hans Vestberg.
Shares of Verizon fell 5.5% to $39.22 as of 9:42 a.m. ET on Monday. Despite the drop, they are up about 4% in 2024.
