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The Markets
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The Markets
by Proactive
Proactive UK has moved.
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Telecoms

Verizon subscriber losses draw focus from Q1 earnings beat

Verizon Communications Inc (NYSE:VZ, ETR:BAC) shares moved lower after the telecommunications firm posted a larger-than-expected drop in wireless subscribers.

For Q1, Verizon saw a net loss of 289,000 retail postpaid phone subscribers, worse than a decline of 218,000 expected.

This overshadowed an earnings and revenue beat for the quarter.

Earnings per share were $1.19, ahead of estimates of $1.15, while revenue was up 1.5% year-over-year at $33.5 billion, compared to the consensus of $33.3 billion.

Wireless service revenue came in at $20.8 billion, above the anticipated $20.4 billion.

The company reaffirmed its full-year guidance. It continues to expect total wireless service revenue growth of 2% to 2.8% and EPS to be flat to up 3%.

"Verizon plays an essential role in our customers’ lives and our differentiated value proposition delivers what customers want and need, on their terms,” Verizon CEO Hans Vestberg said in a statement.

“With our high-quality customer base, network superiority and position of financial strength, we have the momentum and flexibility to continue innovating to meet customer needs and invest for growth."

Shares of Verizon fell 2% to $42 in early trade on Tuesday.

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