A Verizon store on Tuesday, July 20, 2021 in San Francisco, California, US.
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Verizon shares Premarket trading fell nearly 5% on Friday after the company reported second-quarter earnings that missed expectations and lowered its financial forecast for the year.
“While recent performance did not meet our expectations, we remain confident in our long-term strategy,” Verizon CFO Matt Ellis said in a release.
Verizon shares were down 5% at $45.40.
Verizon’s Quarterly Results Come Next AT&T said Thursday that its cash flow Customers in the second quarter were hurt by factors including longer wait times to make their phone payments.
In its updated guidance, Verizon said it now expects wireless service revenue to grow 8.5% to 9.5%, lower than its prior expectations of 9% to 10% growth for the full year. Services and other revenues are now expected to be down 1%. It had earlier said that it expects revenue to be flat.
Verizon also said that full-year adjusted earnings are now expected to be $5.10 to $5.25 per share, lower than the company’s previous forecast of $5.40 to $5.55. The company said it expects adjusted EBITDA to be flat below 1.5%, down from its previous forecast of 2% to 3% growth.
For its second quarter, Verizon said its cash flow was hurt by increased inventory in the current economic environment. It said its operating income has been hurt by higher promotional activity in its consumer segment.
For the three months ended June 30, Verizon reported revenue of $33.79 billion, which was relatively flat from the year-ago period. Analysts were forecasting revenue of $33.75 billion, according to Refinitiv.
Adjusted earnings were $1.31 per share. According to Refinitiv, this was a penny shy of the $1.32 analysts expected.