Verizon Communications (NYSE:VZ) boosted the lower end of its full-year adjusted earnings per share guidance after its second-quarter core profits outperformed estimates, driving shares higher in premarket trading Monday.
The telecom giant now anticipates annual per-share earnings growth between 1% and 3%, an upward revision from the previous range of 0% to 3%, partly fueled by strong demand for its premium service plans. Adjusted EBITDA is also projected to grow between 2.5% and 3.5%, up from the earlier 2% to 3.5% forecast.
In the quarter, adjusted EBITDA increased 4.1% year-over-year to $12.8 billion, beating the Bloomberg consensus estimate of $12.67 billion. Total operating revenue for the group rose 5.2% annually to $34.5 billion, surpassing the prior forecast of $33.76 billion.
Wireless service revenue climbed 2.2% to $20.9 billion, supported by more customers opting for plans with added benefits such as streaming platform access.
To retain customers amid stiff competition from rivals like AT&T (NYSE:T), T-Mobile, Comcast (NASDAQ:CMCSA), and Charter, Verizon has launched targeted promotions. The company had reported weaker subscriber growth in the first quarter, intensifying concerns over the battle for a limited number of new users.
Between April and June, monthly wireless bill-paying subscribers declined by 9,000, missing expectations of 13,000 additions, according to FactSet data cited by Reuters. Meanwhile, broadband net additions reached 293,000, reflecting Verizon’s strategic push into internet services.
Earlier this year, Verizon secured regulatory approval to acquire fiber-optic internet provider Frontier for $20 billion, aiming to expand its network assets to meet growing customer data demand.
Reflecting on the quarterly results and the Frontier acquisition, CEO Hans Vestberg said, “Verizon has momentum and a clear path forward.”
Verizon Communications stock price
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