Verizon down on Q1 results
Verizon Communications stock (VZ) closed down 2.09% on Tuesday after the leading US mobile carrier reported mixed results for the first quarter of 2019 before the market bell yesterday. The stock was also down nearly 1% in the pre-market hours after the results were announced. While the company managed to beat Wall Street estimates for earnings, revenues marginally missed in the first quarter. Verizon also lost more phone subscribers than analysts had expected.
On a year-to-date basis on April 23, Verizon stock gained around 3.78%. Its telecom peers AT&T (T), T-Mobile (TMUS), and Frontier Communications (FTR) increased 16.2%, 15.9%, and 4.2%, respectively. Sprint (S), however, declined 1.9% in the year-to-date period.
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Verizon’s earnings and revenues
Verizon reported adjusted earnings of $1.20 per share in the first quarter, beating both analysts’ expectations and its prior-year earnings of $1.17 per share by 2.6%. However, the leading US wireless carrier slightly missed revenue estimates of $32.156 billion but marginally increased 1.1% year-over-year to $32.128 billion in the quarter, driven by an improvement in wireless service growth.
Outlook for 2019
Verizon forecasts its revenues and adjusted earnings to grow by low-single-digit percentage rates in 2019. Earlier, the company had expected 2019 adjusted earnings to be the same as its adjusted earnings of $4.71 per share in 2018. The growth in earnings was due to the company’s cost-cutting efforts.
Verizon also expects its capital expenditures in the range of $17.0 billion–$18.0 billion this year as it continues to expand its 5G launch.