Verizon Communication Inc, for its cost cutting efforts, succeeded on Tuesday reporting quarterly profits above the estimates by the Wall Street which also encouraged it to raise earning guidance for whole 2019.
But largest U.S. wireless carrier remained failed to achieve is subscription goals as it lost more-than-expected phone subscribers.
Verizon, which previously was expecting to be making profits in 2019 similar to that it reported a year earlier, has now been expecting making adjusted profits at a growth rate of low single-digit percentage.
During the first quarter, Verizon’s profit margins in its core wireless business hurt by accounting changes, Verizon Chief Financial Officer Matt Ellis said in an interview, adding that excluding items, business performance was really well.
New Street Research analyst Jonathan Chaplin, who described the results as mixed, said that guidance raised by the Verizon is seemed to be entirely based on the below-the-line items.
Verizon, in the first quarter ended March 31, came on losing a net of 44,000 monthly subscribers, meaning that the wireless carrier, despite introducing few big price-cut promotions, lost more subscribers than the subscribers it has added in the quarter. Analysts were expecting the Verizon to be losing net of 25,000 phone subscribers, who pay a monthly bill, in the first quarter, according to research firm FactSet.
In the reported quarter, Verizon’s net income attributable to the company reached to $5.03 billion or $1.22 per share against that of $4.55 billion, or $1.11 per share in the same quarter a year ago.
Verizon reported after adjustment earning of $1.20 per share which remained up from analysts’ estimates of $1.17, according to IBES data from Refinitiv.
Total operating expense of the company increased at the rate of about 1 percent to $32.13 billion in the first quarter, while analysts were estimating these to be rising bit higher to $32.16 billion.