Verizon Communications Inc. Wednesday surpassed second-quarter earnings and revenue expectations as more consumers moved to 5G phones and unlimited plans.
The company generated net income of $5.95 billion, or $1.40 per share, compared to $4.84 billion or $1.13 per share a year earlier. On a custom basis, Verizon VZ,
earned $1.37 a share, up from $1.18 a share a year earlier and ahead of the FactSet consensus, which called for $1.30 a share.
Verizon’s revenue for the quarter rose to $33.76 billion from $30.45 billion, while analysts monitored by FactSet had expected an average of $32.77 billion. The company saw $23.5 billion in consumer revenue, $7.8 billion in business revenue and $2.1 billion in media revenue.
Shares rose 1.2% in premarket trading on Wednesday.
In the consumer sector, Verizon posted 0.65% customer churn in postpaid retail phones, one of the lowest rates to date as a limited number of consumers switched wireless carriers. Verizon also saw 350,000 postpaid retail net additions, including 197,000 telephone network additions, and said about 20% of consumer-segment cordless phone customers are now using 5G phones.
The telecom company now expects total wireless service revenue to grow from 3.5% to 4.0% for the full fiscal year, while it previously demanded growth of at least 3%. Verizon withdrew its earlier forecast for service and other revenue growth as it recently announced plans to sell its Verizon Media business, and the deal is expected to close in the third quarter.
Verizon now expects full-year adjusted earnings per share of $5.25 to $5.35, up from its previous forecast of $5.00 to $5.15. The company continues to forecast capital expenditures of $17.5 billion to $18.5 billion for 2021.
Shares of Verizon have lost 4.4% in the past three months, while the Dow Jones Industrial Average DJIA,