Verizon Communications (VZ) posted better-than-expected second quarter earnings Friday, but added fewer new subscribers to its monthly plans following an early summer price hike.
Verizon said adjusted non-GAAP earnings for the three months ending in September were pegged at $1.32 per share, down 7% from the same period last year and just shy of the Street consensus forecast of $1.29 per share. Group revenues, Verizon said, rose 4% from last year to $33.8 billion, just ahead of analysts' estimates of a $33.78 billion tally.
Verzion's post-paid additions for the quarter were pegged at 8,000, down from the 12,000 gained over the three months ending in June and of the year and well shy of the Refinitiv forecast of around 36,000.
Looking into the final months of the 2022 financial year, Verizon reiterated its forecast for adjusted earnings in the region of $5.10 to $5.25 per share and wireless revenue growth of between 8.5% and 9.5%.
"We took a number of actions in the third quarter that helped drive improved operational and financial performance, but we know there's still more work to be done," said CEO Hans Vestberg. "The pricing actions we took earlier this year, as well as our new cost savings program, show that we are being deliberate and strategic in our decisions to strengthen our business."
"At the same time, we are focused on executing our 5G strategy, as we are covering every major market and accelerating our C-Band network build," he added. "We are on track to reach 200 million POPs within first-quarter 2023."
Verizon shares were marked 5.35% lower in early Friday trading to change hands at $35.04 each, extending their six-month decline to around 36.3%.
