Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

5G speeds up Verizon's postpaid user additions, helps raise profit view

Published 10/20/2021, 07:33 AM
Updated 10/20/2021, 12:53 PM
© Reuters. FILE PHOTO: The Verizon store in Superior, Colorado, U.S., July 27, 2017.  REUTERS/Rick Wilking

© Reuters. FILE PHOTO: The Verizon store in Superior, Colorado, U.S., July 27, 2017. REUTERS/Rick Wilking

(Reuters) -Verizon Communications Inc said on Wednesday it added more postpaid phone subscribers than expected in the third quarter and raised its annual earnings forecast, as more Americans switched to 5G-supported devices.

The wireless carrier has been investing heavily in 5G technology to keep up with a surge in demand for mobile and data plans that spiked during the pandemic.

The technology is touted to provide better coverage and faster internet, at a time when much social interaction, work and schooling is online.

Verizon (NYSE:VZ) added 429,000 postpaid phone subscribers in the quarter, above FactSet estimates of 302,300.

Analysts and investors closely watch postpaid phone figures, as those customers pay a recurring monthly bill, making them valuable to the carriers, although subscriber figures between U.S. carriers can be difficult to compare given the variety of plans offered.

In the run-up to the holiday quarter, carriers are also giving aggressive subsidies for the new range of iPhones from Apple Inc (NASDAQ:AAPL). The phones come with custom 5G antennas and radio components for faster speeds.

Verizon has increased its trade-in subsidies on offer of up to $1000 for the latest iPhone 13 in September, matching rival AT&T (NYSE:T) in an attempt to attract more customers to its carrier network.

The company raised its 2021 adjusted earnings per share expectations to between $5.35 to $5.40 from its prior guidance of $5.25 to $5.35.

In the reported quarter, Verizon's total operating revenue rose 4.3% to $32.9 billion, but missed analysts' average estimate of $33.2 billion, according to Refinitiv data.

© Reuters. FILE PHOTO: The Verizon store in Superior, Colorado, U.S., July 27, 2017.  REUTERS/Rick Wilking

Excluding items, it earned $1.41 per share, beating expectations of $1.36.

Shares of Verizon were up 0.7% in premarket trading.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.