Investing.com – Shares in Verizon moved lower in premarket trade on Tuesday after the company warned that the need to invest in 5G networks will stop its earnings growing this year.
For 2019, the company said it expects to achieve low single-digit growth in revenue while adjusted profit will be similar to 2018.
“As we head into 2019 and the 5G era, we’re beginning a period of transformational change,” chief executive officer Hans Vestberg said. “We are laser focused on delivering customers a best-in-class and game-changing experience on our networks.”
The disappointing outlook accompanied a fourth-quarter report in which earnings beat analysts' expectations but revenue fell short.
The company reported adjusted earnings per share, excluding special items of $1.12. That was above consensus of $1.09. Revenue, however, came in at $34.28 billion, below estimates for $34.45 billion.
At 7:25 AM ET (12:25 GMT), shares in Verizon (NYSE:VZ) were down 1.54% to $54.22 in premarket trade.
Verizon follows other major Services sector earnings this month
On January 23, Comcast reported fourth quarter EPS of $0.64 on revenue of $27.85B, compared to forecasts of EPS of $0.62 on revenue of $27.57B.
Netflix earnings beat analyst's expectations on January 17, with fourth quarter EPS of $0.3 on revenue of $4.19B. Investing.com analysts expected EPS of $0.24 on revenue of $4.21B
Stay up-to-date on all of the upcoming earnings reports by visiting Investing.com's earnings calendar