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Verizon shares fall after company cuts full-year forecast


A Verizon store in San Francisco, California, United States, on Tuesday, July 20, 2021.

Bloomberg | beautiful pictures

Shares of Verizon fell on Friday after the company reported second-quarter earnings that missed expectations and cut its financial forecast for the year.

“While recent performance has not lived up to our expectations, we remain confident in our long-term strategy,” Verizon Chief Financial Officer Matt Ellis said in a statement.

Shares of the company fell more than 6%, at $44.71, in morning trading.

Verizon’s quarterly results are out later AT&T on Thursday reported its cash flow in the second quarter was influenced by factors including longer wait times for customers to make payments over the phone.

In its updated guidance, Verizon said it now expects wireless services revenue to grow 8.5% to 9.5%, down from its previous expectation of 9% to 10% growth for the entire year. five. Services and other revenue are now expected to drop 1% to flat. Earlier, the company said it expected that revenue would be flat.

Adjusted earnings for 2022 are now expected to be $5.10 to $5.25 per share, down from the company’s previous forecast of $5.40 to $5.55. la.

In the second quarter, Verizon said it added 12,000 net bill-paying retail phone subscribers, well below the 144,000 StreetAccount estimates. To address budget conscious consumers, the company says it has launched a Unlimited wireless plan last week.

Verizon also said its quarterly cash flow was impacted by increased inventory and that operating income in its consumer segment was impacted by higher promotional activity.

For the three months ended June 30, Verizon reported revenue of $33.79 billion, relatively flat compared with the same period a year ago. Analysts predict revenue of $33.75 billion, according to Refinitiv.

Adjusted earnings were $1.31 per share. According to Refinitiv, the figure was one cent lower than analysts’ expectations of $1.32.

Read the full earnings report here.



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