On Thursday Verizon Communications Inc. knocked second-quarter profit measures as the largest U.S. mobile carrier added far more internet new phone subscribers who pay a monthly bill than expected.
Shares of the Dow component rose 1.4% before the bell after the company stated it added a net 245,000 phone subscribers during the quarter. Analysts have been predicting it to add 163,000 subscribers, according to analysis agency FactSet.
Analysts pay regard to postpaid customers, or these with a recurring bill, as they’re more valuable to carriers and lead to stay with the company longer than prepaid customers.
Verizon, AT&T, T-Mobile, and Sprint control more significant than 98% of the U.S. wireless market and have wireless service revenues of more than $160 billion.
T-Mobile and Sprint that are in the strategy of merging, together have more than 135 million customers, whereas Verizon and AT&T control two-thirds of the entire U.S. wireless market.
Net income rose to $4.07 billion, or 95 cents per share, within the second quarter ended June 30 from $4.25 billion, or $1 per share, a year earlier.
On a customized basis, Verizon earned $1.23 per share, beating analyst average estimate of $1.20 per share, based on IBES data from Refinitiv.
Total operating revenue fell 0.4% to $32.1 billion and missed expectations of $32.41 billion.
Verizon’s 5G network strategy continues to take form, racing against competitors like AT&T and T-Mobile. 5G allows for faster download speeds than the status-quo 4G community.
The company’s inventory, traded on the New York Stock Exchange, ended Wednesday’s trading down 2.4% at 55.27 but grew over 1% in pre-market action.