NEW YORK - Verizon Communications Inc. (NYSE: NYSE:VZ) reported its second-quarter earnings, which were in line with expectations for adjusted earnings per share (EPS) but falling short on revenue. Shares were down 2.5% in premarket trading following the report.
The telecom giant posted an EPS of $1.15, aligning with the consensus estimate. However, revenue for the quarter was $32.8 billion, slightly below the expected $33.05 billion.
The company's wireless service revenue saw a 3.5% increase year over year (YoY) to $19.8 billion, marking continued growth in this segment. Broadband also experienced robust growth, with a 17.2% YoY increase in total broadband subscribers. Despite these gains, the modest 0.6% YoY increase in total operating revenue indicates a challenging environment for equipment sales, which have seen a decrease due to lower upgrade volumes.
Verizon's Chairman and CEO, Hans Vestberg, highlighted the company's operational excellence and the strategic choices made to enhance customer value. He remains confident in the company's trajectory and its ability to meet full-year 2024 financial guidance.
Looking ahead, Verizon anticipates an adjusted EPS range of $4.50 to $4.70 for the full year 2024, with the midpoint of $4.60 slightly above the analyst consensus of $4.57. The company also expects total wireless service revenue growth between 2.0% and 3.5%, and an adjusted EBITDA growth of 1.0% to 3.0%.
Verizon's capital expenditures are projected to be between $17.0 billion and $17.5 billion, with an adjusted effective income tax rate ranging from 22.5% to 24.0%. These projections align with the company's strategic focus on wireless service revenue, consolidated adjusted EBITDA, and free cash flow.
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