Verizon Communications (VZ)
shares opened higher on Monday after the telecommunications giant reported positive first-quarter results. The company lost fewer wireless subscribers than anticipated, with 68,000 monthly bill-paying wireless phone users leaving during the period. This was below analyst expectations of 100,000.Despite the subscriber loss, Verizon’s financial performance exceeded estimates. Adjusted earnings per share (EPS) decreased from $1.20 in the previous year’s quarter to $1.15, but surpassed analyst projections of $1.12. Total revenue grew modestly by 0.2% year-over-year to $33 billion, slightly below the anticipated $33.3 billion.
The company attributed its performance to strong wireless service revenue growth, which increased by 3.3% to $19.5 billion. This was primarily driven by pricing adjustments, the adoption of higher premium price plans, and subscriber growth. Verizon’s fixed wireless subscriber base is also growing rapidly.
Verizon CEO Hans Vestberg expressed optimism about the company’s future: “Our performance in the first quarter sets us up for a successful 2024.” He added, “We are on track to meet our financial guidance and to deliver positive consumer postpaid phone net adds for the year. Our fixed wireless subscriber base is continuing to grow rapidly, and our network remains the best in the industry, by far.”
The company reiterated its financial guidance, expecting total wireless service revenue growth of 2% to 3.5% and adjusted EPS between $4.50 and $4.70. Analysts project an adjusted EPS of $4.58.
Verizon shares rose by 2.3% to $41.44 shortly before the market opened on Monday, reflecting positive investor sentiment towards the company’s first-quarter performance and its outlook for the future.
