Verizon Communications (VZ) reported adjusted earnings in the first quarter that exceeded estimates, while revenues exceeded Wall Street targets. Verizon shares fell on Wednesday as it lost fewer subscribers to the postpaid cordless phone than expected.
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For the March quarter, Verizon’s earnings were $ 1.31 per adjusted share, excluding items. Revenue rose 4% to $ 32.9 billion in the three months ended March 31.
A year earlier, Verizon earned $ 1.26 per share from $ 31.6 billion in revenue. Analysts projected Verizon earnings of $ 1.29 per share on revenue of $ 32.47 billion.
Revenue from wireless services rose 2.4 percent to $ 16.7 billion. Moreover, Verizon said it lost 178,000 postpaid cordless subscribers, compared to analysts’ estimates of a loss of 198,000.
Verizon shares fell a fraction to 58.15 when trading early in the stock market today.
Verizon Stock: Subscribers migrating to higher priced plans
Telecommunications is constantly improving customers on unlimited data plans at a higher price, said Craig Moffett, an analyst at Moffett Nathanson, in a report to customers.
“Today’s result already shows ARPU (average revenue per user) paid up at a healthier pace than we’ve seen since the pandemic started and should
Only from here will it be better, “Moffett said. However, Moffett added that Verizon could fight T-Mobile USA (TMUS) as a 5G wireless network.
In Verizon’s earnings report, revenue from business units rose 1.3% to $ 7.8 billion. Verizon Media’s revenue was $ 1.9 billion, up about 10.4%.
Despite its dividend, Verizon shares have a relatively weak resistance rating of 21 out of the top 99 possible. Verizon shares trade below an entry point of 62.05.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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