Verizon Communications Inc. (NYSE: VZ) released its second-quarter financial results before the markets opened on Tuesday. The telecom giant said that it had $1.20 in earnings per share (EPS) and $32.2 billion in revenue, while consensus estimates had called for $1.14 in EPS and revenue of $31.78 billion. In the same period of last year, it said it had EPS of $0.96 and $30.55 billion in revenue.
For its Wireless segment, Verizon reported revenues of $22.4 billion, an increase of 5.5% year over year. Also, there was a net increase of 531,000 retail postpaid net additions in second-quarter 2018, consisting of net phone additions of 199,000, tablet losses of 37,000 and 369,000 other connected devices additions, primarily wearables. Postpaid smartphone net additions for the quarter were 398,000.
At the same time, the Wireline segment revenues decreased 3.4% year over year to $7.5 billion. The Wireline segment added a net of 43,000 Fios Internet connections. However, Verizon lost 37,000 Fios Video connections in second-quarter 2018 amid pressures from cord-cutting of video bundles.
Looking ahead to the full year, the company expects to see revenue growth in the low- to mid-single-digit percentages and EPS growth in the low single-digits as well. The consensus estimates are $4.59 in EPS and $129.56 billion in revenue for the year.
Lowell McAdam, board chair and chief executive, commented:
Verizon is extremely well-positioned for the future. Our financial and operating results for the first half of 2018 were strong, as evidenced by service revenue, earnings and operating cash flow growth delivered in a highly competitive marketplace.
Shares of Verizon closed Monday at $50.75, with a consensus analyst price target of $56.00 and a 52-week trading range of $43.81 to $54.77. Following the announcement, the stock was up about 3% at $52.17 in early trading indications Tuesday.