Verizon Communications early Tuesday reported first-quarter adjusted earnings that edged by views while revenue fell short of estimates. Verizon stock ended the day on a positive note.
For the period that ended in March, Verizon earnings were $1.20 an adjusted share, excluding one-time special items related to the Tracfone acquisition. Profit fell 11% from a year earlier. Revenue fell 1.9% to $32.9 billion.
A year earlier, Verizon earned $1.35 a share on revenue of $33.6 billion. Analysts had projected Verizon earnings of $1.19 a share on revenue of $33.6 billion for the quarter.
"The revenue miss was due to lower wireless equipment revenue, which is low margin and therefore had minimal impact on the bottom line," Goldman Sachs analyst Brett Feldman said in a note to clients.
Verizon Stock: Consumer Business Struggles
Verizon said it lost 127,000 postpaid wireless phone subscribers, vs. analyst estimates for a loss of 120,000, including both consumer and business customers. The consumer unit lost 263,000 postpaid phone subscribers.
A year earlier, Verizon lost 36,000 postpaid phone subscribers. In the first quarter of 2023, AT&T added 424,000 postpaid phone subscribers, topping estimates.
"Verizon's subscriber growth metrics remain weak, with a shocking 478,000 retail phone subscriber loss across post-paid and pre-paid combined," Craig Moffett, analyst at MoffettNathanson, said in his note to clients.
The telecom company added 393,000 fixed wireless broadband customers, slightly more than the previous quarter.
On the stock market today, Verizon stock initially fell but rebounded and ended the regular session up 0.5% to 37.30. Heading into the Verizon earnings report, shares had retreated 5% in 2023. VZ stock sank 3.65% on Friday, amid disappointing results from rival AT&T.
Verizon stock tumbled 24% last year. VZ stock holds a Relative Strength Rating of 24 out of a possible 99, according to IBD Stock Checkup.
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