Verizon Communications Inc. returned to positive subscriber growth in its consumer postpaid phone business for the fourth quarter, but shares of the wireless giant dipped in morning trading Tuesday after the company’s full-year earnings outlook came up shy of analyst expectations.
The company saw 41,000 net additions in its consumer wireless retail postpaid phone business, snapping a streak of subscriber losses that lasted three quarters. While FactSet doesn’t easily track this metric, Evercore ISI analysts were anticipating 50,000 postpaid phone net additions for the consumer business.
Verizon met earnings expectations for the most recent quarter, though Wolfe Research analyst Peter Supino wrote in a note to clients that “promotions clearly weighed on margins.”
The company recorded fourth-quarter net income of $6.7 billion, or $1.56 a share, compared with $4.74 billion, or $1.11 a share, in the year-prior quarter. After adjustments, Verizon
VZ,
+0.95%
earned $1.19 a share, compared with $1.31 a share a year before. The company matched the FactSet consensus, which was for $1.19 a share.
Revenue for the most recent quarter rose to $35.3 billion from $34.1 billion a year before, whereas analysts had been expecting $35.1 billion.
For the full year, executives at Verizon anticipate 2.5% to 4.5% in total wireless service revenue growth, though this projection includes about 190 basis points of expected benefits from the reallocation to wireless service revenue of some items previously classified as “other” revenue. They also model adjusted earnings per share of $4.55 to $4.85, whereas analysts tracked by FactSet were looking for $4.96.
Verizon’s management also expects $18.25 billion to $19.25 billion in capital spending for the full year, including what the company says will be the final $1.75 billion of its incremental $10 billion of C-Band-related spending. The FactSet consensus was for $19.8 billion in capital expenditures.
During the latest quarter, Verizon saw 379,000 fixed-wireless net additions. The performance there was “a bright spot for Verizon,” according to Third Bridge analyst Jamie Lumley, though he wrote that “even after a strong quarter, it is clear that T-Mobile is still leading the pack for this offering.”
T-Mobile US Inc.
TMUS,
+1.08%
hasn’t formally reported, but the company disclosed ahead of an investor conference earlier this month that it saw 927,000 postpaid phone net additions during the fourth quarter. Verizon’s earnings report comes a day ahead of earnings for AT&T Inc.
T,
+1.20%
See: AT&T could ‘turn the corner’ on a key metric this year
Verizon’s stock was off 1.7% shortly after Tuesday’s open. If it stays in the red through the close of Tuesday’s session, that would mark the fifth quarter in a row that the stock fell after an earnings report.
Source: https://www.marketwatch.com/story/verizon-earnings-outlook-comes-up-short-stock-falls-11674562961?siteid=yhoof2&yptr=yahoo
Verizon’s stock falls after earnings outlook comes up short
Verizon Communications Inc. returned to positive subscriber growth in its consumer postpaid phone business for the fourth quarter, but shares of the wireless giant dipped in morning trading Tuesday after the company’s full-year earnings outlook came up shy of analyst expectations.
The company saw 41,000 net additions in its consumer wireless retail postpaid phone business, snapping a streak of subscriber losses that lasted three quarters. While FactSet doesn’t easily track this metric, Evercore ISI analysts were anticipating 50,000 postpaid phone net additions for the consumer business.
Verizon met earnings expectations for the most recent quarter, though Wolfe Research analyst Peter Supino wrote in a note to clients that “promotions clearly weighed on margins.”
The company recorded fourth-quarter net income of $6.7 billion, or $1.56 a share, compared with $4.74 billion, or $1.11 a share, in the year-prior quarter. After adjustments, Verizon
+0.95%
VZ,
earned $1.19 a share, compared with $1.31 a share a year before. The company matched the FactSet consensus, which was for $1.19 a share.
Revenue for the most recent quarter rose to $35.3 billion from $34.1 billion a year before, whereas analysts had been expecting $35.1 billion.
For the full year, executives at Verizon anticipate 2.5% to 4.5% in total wireless service revenue growth, though this projection includes about 190 basis points of expected benefits from the reallocation to wireless service revenue of some items previously classified as “other” revenue. They also model adjusted earnings per share of $4.55 to $4.85, whereas analysts tracked by FactSet were looking for $4.96.
Verizon’s management also expects $18.25 billion to $19.25 billion in capital spending for the full year, including what the company says will be the final $1.75 billion of its incremental $10 billion of C-Band-related spending. The FactSet consensus was for $19.8 billion in capital expenditures.
During the latest quarter, Verizon saw 379,000 fixed-wireless net additions. The performance there was “a bright spot for Verizon,” according to Third Bridge analyst Jamie Lumley, though he wrote that “even after a strong quarter, it is clear that T-Mobile is still leading the pack for this offering.”
T-Mobile US Inc.
+1.08%
+1.20%
TMUS,
hasn’t formally reported, but the company disclosed ahead of an investor conference earlier this month that it saw 927,000 postpaid phone net additions during the fourth quarter. Verizon’s earnings report comes a day ahead of earnings for AT&T Inc.
T,
See: AT&T could ‘turn the corner’ on a key metric this year
Verizon’s stock was off 1.7% shortly after Tuesday’s open. If it stays in the red through the close of Tuesday’s session, that would mark the fifth quarter in a row that the stock fell after an earnings report.
Source: https://www.marketwatch.com/story/verizon-earnings-outlook-comes-up-short-stock-falls-11674562961?siteid=yhoof2&yptr=yahoo