Verizon Communications (VZ) reported second-quarter adjusted earnings on Monday that met estimates, but revenue missed Wall Street targets, causing the stock to fall 6%. This significant decline caused Verizon's stock to settle around the $39 mark, wiping out nearly all the gains the company had achieved year to date. The company added 148,000 wireless postpaid phone subscribers, exceeding the 94,000 expected, yet its consumer unit lost 8,000 subscribers while adding 156,000 business subscribers. For the quarter ending June 30, Verizon's adjusted earnings were $1.15 per share, down 5% from the previous year, with revenue rising 0.6% to $32.8 billion, below the $33.04 billion forecasted.
Additionally, wireless service revenue increased by 3.5% to $19.8 billion, and earnings before interest, taxes, depreciation, and amortization (EBITDA) reached $12.3 billion, slightly surpassing estimates of $12.27 billion. These somewhat disappointing earnings from Verizon raise questions about how AT&T (T), which is set to report its Q2 earnings on July 24th, will perform. Following Verizon’s revenue miss, AT&T's stock dropped 2.9%, and T-Mobile US (TMUS) fell 2.5%. Investors holding shares in these companies should carefully consider their strategies and how to navigate the upcoming earnings reports in the coming weeks.
Comments