Verizon’s revenue comes in 5% lower in the fiscal second quarter
- Verizon Communication's revenue comes in 5% lower in the fiscal second quarter.
- The U.S. telecommunications company's net income jumps to £3.68 billion in Q2.
- Verizon forecasts its annual adjusted EPS in the range of a 2% decline to a 2% growth.
Verizon Communications Inc. (NYSE: VZ) published its quarterly financial results on Friday that came in stronger what the analysts had forecast. The U.S. credit card company, American Express, also reported an unprecedented 85% decline in net income on Friday.
Shares of the company opened just under 1% up on Friday and jumped another 1.5% on market open. At £44.77 per share, Verizon is currently more than 10% down year to date in the stock market after recovering from an even lower £39.11 per share in March. Learn more about why do prices rise and fall in the stock market.
Verizon’s Q2 financial results versus analysts’ estimates
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According to FactSet, experts were expecting the company to print £23.42 billion in revenue in the second quarter. In terms of earnings per share (EPS), they had estimated 90 pence. In its report on Friday, Verizon topped both estimates posting £23.81 billion in revenue and 92 pence of adjusted earnings per share in Q2.
At £3.68 billion, the telecommunications company said that its net income in the second quarter came in higher than £3.05 billion in the same quarter last year. Its quarterly revenue, however, was tanked about 5% on a year over year basis. The U.S. telecommunications company had also seen a revenue decline in Q1.
The New York-based company added a total of 199K postpaid smartphone subscribers, 97K phone subscribers, and 72K retail postpaid subscribers in Q2. Verizon’s retail postpaid phone churn and retail postpaid churn came in at 0.51% and 0.69% respectively in the second quarter.
For the full year, the American multinational now forecasts its adjusted earnings per share to fall in the range of a 2% decline to a 2% growth. Verizon also highlighted that its estimate assumes its bad debt reserves and macroeconomic environment at large to remain unchanged.
Other prominent figures in Verizon’s earnings report
Other prominent figures in Verizon’s earnings report on Friday include £16.53 billion of revenue that the company generated from its consumer business and £1.10 billion that it generated from its media segment.
Experts had forecast its consumer segment to generate a much lower £5.87 billion of revenue in the second quarter. Its revenue from media was reported 24.5% down on an annualised basis, but Verizon expressed confidence that customer engagement in this segment increased in Q2.
Verizon’s performance in the stock market was reported slightly upbeat in the stock market last year with an annual gain of roughly 10%. At the time of writing, the telecommunications company has a market cap of £185.35 billion and a price to earnings ratio of 12.88.