Key facts
- Verizon increased its annual forecast for adjusted profit and free cash flow.
- The company added 184,000 wireless subscribers in the second quarter, exceeding analyst expectations.
- New unlimited 5G plans and bundled offerings contributed to subscriber growth.
- Second-quarter revenue was $34.3 billion, falling short of analyst estimates.
- Adjusted profit of $1.30 per share surpassed analyst expectations.
Verizon has raised its annual forecasts for adjusted profit and free cash flow, signaling a positive outlook driven by increased wireless subscriber additions in the second quarter. The company reported gaining 184,000 monthly-bill paying wireless subscribers, surpassing analyst expectations of 103,900. This growth is attributed to the recent launch of simplified unlimited 5G plans and bundled wireless-broadband offerings, aimed at improving customer acquisition after trailing competitors.
Despite the subscriber gains, Verizon's second-quarter revenue of $34.3 billion fell below analysts' estimates of $35.16 billion, largely due to a decline in equipment revenue as customers held onto phones longer. However, adjusted profit per share came in at $1.30, beating the estimated $1.27, aided by cost controls and reduced spending on device subsidies.
Under CEO Dan Schulman, Verizon is undergoing a strategic shift focused on transparent pricing and bundled services to enhance customer retention. The company now anticipates annual adjusted profit between $4.99 and $5.04 per share, an upward revision from its previous guidance. Free cash flow is projected to grow between 9% and 10% this year, an increase from the earlier estimate of about 7% or more.