Verizon Communications Inc. (NYSE: VZ) said on Wednesday that the pandemic had minimal impact on its wireless churn rates in recent months, as it reported earnings that topped estimates for the fiscal third quarter.
Shares of the company were reported 0.3% up in premarket trading on Wednesday. On a year to date basis, Verizon Communications is now roughly 4% down in the stock market, but have recovered 15% since late March. Interested in investing in the stock market online? Here’s a simple guide to get you started.
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Verizon’s Q3 financial results versus analysts’ estimates
At £3.45 billion, Verizon’s net income in the third quarter came in weaker than £4.06 billion in the same quarter last year. On an adjusted basis, the American multinational earned 96 pence per share – almost flat versus the year-ago figure. Verizon earned the title of the fastest commercially available 5G in the U.S., earlier this week.
According to Verizon, the ongoing Coronavirus pandemic resulted in a negative impact of roughly 3.83 pence per share on its earnings in the recent quarter. FactSet Consensus for the telecommunications conglomerate’s adjusted per-share earnings in Q3 stood at 93 pence.
In terms of revenue, Verizon reported a decline to £24.14 billion in the third quarter from £25.21 billion in the comparable quarter of last year. The company attributed this decline primarily to lower customer activity.
Analysts had anticipated a slightly higher £24.21 billion of revenue for Verizon in the recent quarter, as per FactSet. In the prior quarter (Q2), the telecom firm had revealed a 5% decline in its revenue.
Verizon’s guidance for the full year
In its earnings report on Wednesday, Verizon also said that the rate of retail postpaid phone churn in Q3 dropped to 0.63% versus 0.79% last year. The New York-based company raised its guidance for the full year and said it now expects its adjusted per-share earnings to remain flat or record a 2% annualised growth this year.
In its previous estimate, Verizon had forecast a range of negative 2% to 2% for the year over year growth in its annual adjusted EPS. For the fourth quarter, the U.S. company expects a minimum of 2% annualised growth in revenue from wireless service.
At the time of writing, the American multinational telecom conglomerate has a market cap of £181.52 billion and a price to earnings ratio of 12.38.