On Tuesday, Verizon (VZ) reported higher quarterly profits as its mobile business exceeded analysts’ expectations.
Verizon posted earnings of $5.07 billion during the fourth quarter, compared to a loss of $4.23 billion in the year-ago period. Adjusted EPS came in a 66 cents per share of VZ stock. That beat Wall Street, which was looking for adjusted EPS of 65 cents per share of VZ stock, Reuters notes.
Verizon noted that Verizon Wireless, its mobile business, added 1.6 million new subscribers during the quarter. Analysts had only anticipated 1.5 million new subscribers. Verizon Wireless’ margin for the fourth quarter was 47% on EBITA, narrowing beating Wall Street estimates and allaying fears that competition in the wireless market might dent its results.
Last year, Verizon announced that it would pay $130 billion to acquire Vodafone’s (VOD) minority stake in Verizon Wireless.
Despite the good news, VZ stock sank about 3% in Tuesday morning trading. VZ stock has gained more than 24% over the past year.