U.S. Markets close in 3 hrs 48 mins

Verizon's earnings beat estimates, boosted by wireless growth

Javier E. David
Editor focused on markets and the economy

Telecommunications giant Verizon (VZ) posted earnings per share of $1.22, up from $1.17 per adjusted share in the comparable year-ago quarter. Revenues were $32.1 billion, versus $31.8 billion in the first quarter of 2018.

Analysts in a Bloomberg consensus forecast expected the company to post earnings per share of $1.17 on revenues of $32.15 billion.

The company added 61,000 retail net postpaid additions, a key metric of how many users lock in a contract, which included 174,000 postpaid smartphone net additions.

Verizon’s service revenues rose 4.4% during the first 3 months of 2019, helped in part by customers added higher-priced plans and new connections, the company said. Separately, Verizon added a net of 52,000 Fios Internet connections, but lost a net 53,000 Fios Video connections.

Hans Vestberg, Chairman and CEO of Verizon Communications Inc. (David Paul Morris/Bloomberg via Getty Images)

Like its competitors in the telecom industry, Verizon has been plowing ahead with plans to upgrade its wireless network to 5G. The next generation of wireless is critical to smartphone makers like Samsung and Apple as they plan their next phases of cellphone development.

“2019 is shaping up to be an exciting year for Verizon. We are leading the world in the development of new technologies with the launch of our 5G Ultra Wideband network,” Chairman and CEO Hans Vestberg said in a statement.

“Our ambition remains unchanged to provide the most advanced next-generation networks in the world,” he added.

On Tuesday, the company’s stock fell by over 2%, changing hands near $57 per share, despite Verizon raising its guidance for the second quarter.

Verizon is the parent company of Verizon Media, which owns Yahoo Finance.