Verizon Communications Inc (NYSE:VZ, ETR:BAC) shares jumped almost 5% after the telecommunications firm posted better-than-expected financial results for the second quarter and raised its full-year profit and free cash flow forecasts.
For Q2, the company reported adjusted earnings per share (EPS) of $1.22, up from $1.15 in the year-ago quarter and $0.04 above the Street consensus of $1.18.
Revenue grew to $34.5 billion, up 5.2% year-over-year and ahead of estimates of $33.72 billion.
Wireless service revenue grew 2.2% in the year-ago quarter to $20.9 billion.
"Verizon's strong second-quarter financial performance reflects our high-quality, industry-leading customer base, our multiple growth paths, the success of our disciplined, segmented approach, and the inherent strength of our company,” Verizon CEO Hans Vestberg said in a statement.
“With momentum and a clear path forward, we are raising our full-year guidance for adjusted EBITDA, adjusted EPS and free cash flow as we move into the second half of the year and advance toward closing the Frontier acquisition."
The company now expects adjusted EBITDA growth of 2.5% to 3.5%, up from its earlier guidance of 2% to 3.5%.
It expects adjusted EPS growth of 1% to 3%, up from its earlier guidance of flat to 3%, and free cash flow in the range of $19.5 billion to $20.5 billion, up from its earlier forecast $17.5 billion $18.5 billion.
Shares of Verizon added 4.6% at about $43 late morning on Monday.