December 13, 2025
Verizon ekes out subscriber gains, but stock moves lower after earnings

Verizon ekes out subscriber gains, but stock moves lower after earnings

Verizon ekes out subscriber gains, but stock moves lower after earnings – MarketWatch

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” : ‘int.’; const loginBaseUrl = LOGIN_URL[pageSiteProduct]; const loginUrl = `https://${loginUrlPrefix}${loginBaseUrl}/google-login`; const targetUrl = new URL(window.location.href); targetUrl.searchParams.set(‘isGaa’, true); fetch(registerEndpoint, { method: ‘POST’, body: JSON.stringify({ id_token: credential?.credential, displayContextId: ‘SOCIAL_CONNECT’, returnUrl: window.location.href.split(‘?’)[0], editionId: `${EDITION_ID[pageSiteProduct]}`, registrationSource: `${REGISTRATION_SOURCE[pageSiteProduct]}` }), headers: { ‘content-type’: ‘application/json’, } }) .then((response) => { if (!response.ok) { console.error(‘GoogleEA: Social Connect Invalid Status Code’); return; } return response.json(); }) .then((userState) => { if (!userState) { console.error(‘GoogleEA: Social Connect No Data’); return; } window.location.href = `${loginUrl}?target=${encodeURIComponent(targetUrl)}`; }) .catch((err) => { console.error(`GoogleEA: Social Connect Err: ${err}`); }); } }; })() ]]]]]]]]>]]]]]]>]]]]>]]>

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Earnings Results

Last Updated: July 25, 2023 at 10:20 a.m. ET First Published: July 25, 2023 at 7:17 a.m. ET

Company says recent price increases are starting to pay off

Verizon logged 136,000 wireless retail postpaid phone net losses in its consumer segment during the second quarter, but it saw gains of a higher magnitude in its business segment.

Justin Sullivan/Getty Images

[]Verizon Communications Inc. eked out a surprise net gain on a key subscriber metric during the latest quarter, although that wasn’t doing much to help its stock.

[]The telecommunications giant added a net 8,000 postpaid phone subscribers in the second quarter, with its 144,000 postpaid phone net additions in the business segment offsetting net losses of 136,000 in the consumer business.

[]“Our consumer wireless strategy of segmentation and financial discipline is paying off,” Chief Executive Hans Vestberg said on a call with analysts after the company reported second-quarter earnings on Tuesday. He called out year-over-year growth in Verizon’s VZ, +0.64% postpaid phone gross additions, postpaid churn that improved on a sequential basis and “significantly lower promo upgrade levels.”

[]Verizon changed its plan offerings back in May, simplifying the list of plans while giving consumers more options to customize add-on services. Vestberg noted that the strategy is still in its “early days” but that it has helped the consumer business drive “notable operational improvements by encouraging customers to take on premium plans,” which in turn boost average revenue per account.

[]Citi analyst Michael Rollins wrote that he “learned from [Verizon] that the postpaid performance did not benefit from possible prepaid-to-postpaid migration, while remaining a future opportunity.”

[]Though Verizon shares opened up 1.9% higher Tuesday, they were off about 0.6% in recent action.

[]Chief Financial Officer Tony Skiadas shared an update on the earnings call related to the company’s legacy lead-clad cables, a growing area of concern to investors given recent Wall Street Journal reporting asserting health risks associated with these cables.

[]“We’re not disturbed,” Skiadas said, according to a transcript provided by AlphaSense/Sentieo. “The likelihood of exposure to lead from lead-sheathed cables is low. In addition, because the lead-sheathed cable was used as a feeder and distribution cable and does not run into individual homes or apartments, it is generally in locations that minimize the potential for public contact.”

[]He said that Verizon’s “copper network is comprised of less than 540,000 miles of cable, roughly half of which is aerial,” while lead-sheathed cable makes up a small portion of the company’s copper-cable network.

[]“There are a number of unknowns in this area, including whether there is a health risk presented by undisturbed lead-sheathed cable and if there is a risk, how that risk should be addressed,” he continued. “As a result, we do not believe there’s a meaningful way to estimate any potential cost to the company or that any such estimate would even be useful.”

[]Don’t miss: AT&T to pause prior plans to remove lead cables under Lake Tahoe as it works with regulators

[]The company generated second-quarter net income of $4.8 billion, or $1.10 a share, compared with $5.2 billion, or $1.24 a share, in the year-earlier period. On an adjusted basis, Verizon earned $1.21 a share, compared with $1.31 a share a year before, while the FactSet consensus was for $1.17 a share.

[]Verizon’s earnings reflected a roughly $598 million pretax loss from special items including severance charges, amortization of intangible assets related to its TracFone deal and costs related to real estate and other assets the company will no longer be using.

[]Revenue fell to $32.6 billion from $33.8 billion, while analysts were modeling $33.3 billion. The company flagged reduced wireless-equipment revenue and lower activity in postpaid upgrades.

[]Total wireless-service revenue was up 3.8% in the quarter, in part reflecting recent price increases as well as impacts from the company’s fixed-wireless offerings.

[]See also: Verizon’s lead ‘overhang’ may limit dividend increases, analyst says in downgrade

[]The company said it continues to expect total wireless-service revenue growth of 2.5% to 4.5% for the full year, and it maintained its expectation for $4.55 to $4.85 in adjusted earnings per share.

Raytheon’s stock has worst selloff in more than 3 years after company says some Pratt & Whitney engines need to be removed from service

[]Raytheon’s stock tumbled 10% on Tuesday after the company said it needs to remove certain Pratt & Whitney jet engines from service.

[]Emily Bary is a MarketWatch reporter based in New York.

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