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Verizon (NYSE:VZ) shares erased premarket gains and fell fractionally on Monday as the New York-based telecom reported first-quarter earnings that topped estimates, aided by growth in its wireless unit.
For the period ending March 31, Verizon earned an adjusted $1.15 per share as revenue rose 0.3% year-over-year to $33B. Helping the quarter was a 3.4% year-over-year increase in wireless service revenue to $19.5B.
Retail postpaid phone net additions came in at 253,000, Verizon said.
On a GAAP basis, the company earned $1.09 per share.
Consumer revenue during the period was $25.1B, up 0.8% year-over-year as service revenue was offset by declines in wireless equipment revenue. Total Business revenue during the period was $7.4B, down 1.6% year-over-year, impacted by lower wireline revenue and lower wireless equipment revenue.
Verizon also added 389,000 broadband subscribers during the period, the sixth quarter in a row to show gains. Verizon Business accounted for 151,000 fixed wireless access additions during the period, its best quarter to date.
Verizon also added 53,000 Fios internet net additions during the quarter.
“Our strong results show that our team is delivering. Our performance in the first quarter sets us up for a successful 2024,” said Verizon Chairman and CEO Hans Vestberg in a statement. “We are on track to meet our financial guidance and to deliver positive Consumer postpaid phone net adds for the year. Our fixed wireless subscriber base is continuing to grow rapidly, and our network remains the best in the industry, by far.”
Looking ahead, Verizon still expects to earn between $4.50 and $4.70 per share on an adjusted basis, compared to the analyst estimate of $4.57 per share. It also expects wireless service revenue to grow between 2% and 3.5%, while adjusted EBITDA is forecast to grow between 1% and 3%.
Capital expenditures are expected to be between $17B and $17.5B for the full year.
The company will host a conference call to discuss the results at 8:30 a.m. EST.
AT&T (T) and T-Mobile (TMUS) shares also moved higher on Monday on back of Verizon’s results. AT&T is set to report fourth-quarter results tomorrow before the market open while T-Mobile is slated to report on Thursday after the close of trading.
