Verizon falls well short of Wall Street’s prediction of net new phone subscribers during Q2
Verizon’s gain of net, new postpaid phone subscribers fell well short of analyst’s estimates
While analysts were expecting the wireless provider to announce that 167,000 net new postpaid phone subscribers had joined Verizon over the three months, the actual number reported by Verizon for the quarter was a gain of only 12,000 net new postpaid phone subscribers. The postpaid phone churn rate was .81% while the total postpaid churn was 1.03%.
Verizon lowered the range of its estimated net income for the entire year
Verizon Chairman and CEO Hans Vestberg said during yesterday’s earnings call, “The inflationary environment is clearly impacting consumer behavior, and we also saw intensified competition for consumer attention.” The quarter, he said, was “not a good barometer for where Verizon has been or where it’s going.”
Verizon lowered its estimate of 2022 wireless service growth to a range between 8.5% and 9.5%, down from the previous forecast of a 9% to 10% gain. The company also expects to spend an additional $5 billion to $6 billion in additional expenditures related to the carrier’s 5G C-band spectrum.
Verizon makes a change to its 5G service tiers making Ultra WideBand 5G accessible to many more subscribers
Thanks to the C-band and a shrewd move by Verizon, more subscribers now access the carrier’s Ultra Wideband service
This writer, a Verizon subscriber, recently connected to Verizon’s 5G Ultra Wideband service for the first time in Salem, Massachusetts this past week. A quick tap on Ookla’s Sppedtest showed that I was getting a download data speed of nearly 400Mbps.
Total operating revenue rose .1% to $33.79 billion from the year ago’s $33.76 billion. Net declined 10.7% from $5.95 billion or $1.40 per share to $5.32 billion or $1.24 per share. For the six months ended in June, total operating revenue came in at $67.34 billion versus the prior year’s $66.63 billion. That is a 1.1% increase.
Net income for the first half of the year weighed in at $10.03 billion (or $2.33 per share) vs. $11.33 billion (or $2.67 per share). That was a decline of 11.5%. Verizon lowered its earnings estimates for the entire year to a range of $5.10 to $5.25 for adjusted earnings per share, down from its prior guidance for adjusted EPS of $5.40 to $5.55.