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Verizon Communication’s revenue missed Wall Street estimates.
Pau Parina/AFP/Getty Images
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It reported sales did not miss Wall Street estimates and the telecom giant’s subscriber count fell in the first quarter.
Verizon (Stock ticker: VZ) reported first-quarter adjusted earnings of $1.20 a share, beating analyst estimates by 1 cent.
For 2023, Verizon said it still expects total wireless revenue growth between 2.5% and 4.5%. It also said it continues to expect adjusted earnings between $4.55 per share and $4.85 per share.
“Our operating and financial results reflect the steps we have taken to improve our performance,” said CEO Hans Vestberg.
However, the company’s consumer business continues to suffer as inflation puts pressure on consumers. Revenue for the quarter of $32.9 billion missed Wall Street’s forecast of $33.57 billion. Verizon reported a net loss of 263,000 prepaid retail wireless phone losses in the first quarter.
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AT&T
(T) last week published results that also showed waning consumer demand. The company’s first-quarter gain of 424,000 in postpaid subscribers — people who pay for phone and Internet services via a monthly bill — was its lowest tally since the start of the pandemic.
The figures highlighted consumers’ struggle between the big three telecom companies after they experienced record growth during social distancing, when people relied more than usual on their phones.
Vestberg likely has no plans to entice consumers with promotions. Vestberg said in January that he believes promotion incentives are not sustainable for the industry in the long term.
The results also come at a pivotal time for Verizon, which announced a slew of management changes in March. Changes include Sowmyanarayan Sampath, who used to lead Verizon Business Group, being named CEO of Verizon Consumer Group.
Verizon shares fell 0.8% in premarket trading Tuesday, at $36.80. The stock has been under pressure since late last year, trading largely below the $40 level. As it approaches Tuesday trading, it’s down 5.8% in 2023.
Write to Karishma Vanjani at karishma.vanjani@dowjones.com