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Verizon shares fall after company cuts full-year forecast


A Verizon store in San Francisco, California, U.S., on Tuesday, July 20, 2021.

Bloomberg | Getty Images

Shares of Verizon fell Friday after the corporate reported second-quarter earnings that fell shy of expectations and trimmed its financial forecast for the yr.

“Although recent performance didn’t meet our expectations, we remain confident in our long-term strategy,” Verizon CFO Matt Ellis said in a release.

The corporate’s stock closed down around 7% at $44.48.

Verizon’s quarterly results got here after AT&T on Thursday said its money flow within the second quarter was hurt by aspects including customers waiting longer to make their phone payments.

In its updated guidance, Verizon said it now expects wireless service revenue to extend 8.5% to 9.5%, down from its earlier expectations for growth of 9% to 10% for the total yr. Service and other revenue is now expected to be down 1% to flat. It previously said it expected that revenue to be flat.

Adjusted earnings for 2022 at the moment are expected to be $5.10 to $5.25 per share, down from the corporate’s previous forecast of $5.40 to $5.55.

For its second quarter, Verizon said it added 12,000 net retail phone subscribers who pay a monthly bill, far below the 144,000 estimated by StreetAccount. To deal with budget-conscious consumers, the corporate said it launched an unlimited wireless plan last week.

Verizon also said its quarterly money flow was hurt by increased inventory and that operating income in its consumer segment was hurt by higher promotional activity.

For the three months ended Jun 30, Verizon reported revenue of $33.79 billion, which was relatively flat from the year-ago period. Analysts were anticipating revenue of $33.75 billion, based on Refinitiv.

Adjusted earnings were $1.31 per share. That was a penny shy of the $1.32 analysts expected, based on Refinitiv.

Read the total earnings report here.

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