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Verizon: Profit Meets Forecasts, Wireless Shines

But its wireline and FiOS businesses slip, worrying investors


Verizon Communications (NYSE:VZ) announced today that it earned $1.8 billion during the second quarter, up 13.4% from last year.

Revenues at the telecommunications provider edged up 3.7% over last year to hit $28.6 billion.

Sprint Launches New Wireless Data Network
Sprint Launches New Wireless Data Network

EPS for the second quarter was 64 cents, which met the predictions of Wall Street analysts, Reuters noted.

Investors were not impressed, however. Verizon shares dropped more than 2% in Thursday mid-day trading.

The company’s wireless business added 888,000 new subscribers during the quarter, easily topping analysts’ forecasts of 666,000 new subscribers. The new customers were mostly drawn from rivals Sprint (NYSE:S) and Deutsche Telecom‘s (PINK:DTEGY) T-Mobile.

Analysts cited by Reuters called the wireless subscriber boost “terrific.”

However, revenue at the company’s wireline business slipped 2%, missing analysts’ estimates as spending by businesses remained muted.

Company officials said that its enterprise business had been negatively affected by the slowdown in Europe and the strengthening U.S. dollar.

Other analysts noted that Verizon had fallen short of forecasts for new subscribers for its FiOS television service, which added 120,000 customers during the quarter.

Last month, Verizon debuted its “Share Everything” pricing plan allowing wireless customers to purchase data plans that divide service among multiple mobile devices.

Article printed from InvestorPlace Media,

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