Verizon Communications (VZ.N) surprised everyone on Tuesday by adding more wireless customers than expected. This was because more people upgraded their phones and plan to use its super-fast 5G network. This caused its shares to rise by almost 3% in premarket trade.
The company has been working hard to build out its 5G network in the U.S., hoping that it will give it an edge over cheaper services from competitors like T-Mobile (TMUS.O) in a market that is very competitive.
Analysts asked by Factset said that analysts expected Verizon to lose 11,000 monthly bill-paying wireless phone customers in the second quarter. Instead, Verizon added 8,000 net monthly bill-paying customers, which is better than what was expected.
Its findings come after a report in the Wall Street Journal on July 9 said that the company and AT&T were among the telecom companies that gave up on a huge network of lead-coated cables that could have polluted water and soil. This report has shook up the sector.
Visible Alpha says that the free cash flow came in at $5.6 billion, which was higher than the average expert prediction of $5.05 billion. This helps investors decide how much dividends to pay out.
Refinitiv data shows that Verizon’s total income dropped 3.5% to $32.6 billion in the quarter that ended June 30. This was less than the $33.24 billion that analysts had predicted.
The company also stuck to its prediction that it would make between $4.55 and $4.85 per share in 2023.
It said that revenue from wireless services is projected to grow between 2.5% and 4.5% in 2023.
Net income fell 10.3% to $4.8 billion.
The free cash flow number in line 5 has been changed from $8 billion to $5.6 billion.