Verizon Matches Profit Expectations But Beats On Revenue

Verizon Communications Inc. reported second-quarter net profit of $4.48 billion, or $1.07 a share, compared with $831 million, or 17 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share came to 96 cents, matching the FactSet consensus. Revenue rose to $30.55 billion from $30.53 billion, above the FactSet consensus of $29.86 billion as a 2.2% decline in service revenue to $26.25 billion was offset by a 16% increase in wireless equipment revenue to $4.30 billion. Wireless retail postpaid connections base grew 1.2%, while retail prepaid connections increased 1.4%. Total retail postpaid churn was 0.94%, in line with a year ago. Wireline revenue rose 1.2% to $7.8 billion, with Fios revenue rising 4.4% to $2.9 billion. The company expects 2017 organic revenue to be consistent with 2016. The stock, which was still inactive in premarket trade, has tumbled 17% year to date, while the Dow Jones Industrial Average has gained 9.9%.