Yahoo Finance Live anchors discuss second-quarter earnings for Verizon.
(Disclosure: Verizon owns a stake in Yahoo.)
- We're going to keep track of shares of SAM, as well as shares of VZ. We're tracking those here on the day. You're seeing them move lower by about 4 and 1/2%. And that's after reporting second-quarter earnings, beating out revenue estimates but missing on the bottom line.
Now, as we had been continuing to talk about AT&T earlier on-- there you're taking a look at the actuals versus the estimates there-- but continuing to think through how quickly the consumers are able to pay their bills, that is one kind of consistent measure here. And I think, for VZ, what they're citing is actually the churn in customers that they're seeing right now. And the net loss in this most recent quarter, that particularly is catching some of the investors' attention here on the day.
- I think you're seeing consumers push back on these price hikes from Verizon, from, of course, AT&T, like we heard from them yesterday. Next up is T-Mobile. They have notoriously, or for a long time, been the lowest-cost option in the market. But they have pushed through price increases. Consumers say, we're just not having it.
- I thought this release was really interesting. I didn't have a chance to listen to the call yet, but it was very, like-- I would do the motion of hitting my chest, but I have too much jewelry on-- but it was very like, ugh, we're so sorry, this was not good, this is not up to snuff, which I think is kind of the right tone you want to strike in these kinds of situations. But I did think it was interesting here that things are not going well from the company that-- the CFO Matt Ellis, for example, says "recent performance did not meet our expectations," which is, in corporate speak--
- Completely different tone from AmEx. AmEx is talking about 30% cardmember growth.
- Most definitely.
- And you have Verizon losing customers.
- It sounds like one area of the company that is going well is TracFone, which they bought recently.
- Yeah, mm-hmm.
- And again, maybe that speaks to--
- Are those burner phones? Those are burner phones, right?
- Yeah, well, maybe that speaks to the lower price point that maybe is--
- Or prepaid, sorry.
- --doing a little bit better, right, that that end of the market is doing a little bit better.
- Yeah. Wireless service revenue increasing 10 and 1/2% year over year, driven by TracFone, as you mentioned. And then just putting a number on the retail postpaid phone net losses that we saw in this most recent quarter from Verizon, 215,000 net losses due to a year-over-year increase in churn, year-over-year decline in phone gross additions, as well, they mentioned.