Thursday, July 18, 2013

Verizon Wireless Q2 Earnings

Earlier today, Verizon Wireless reported its Q2 earnings which showed double digit growth in adjusted earnings per share, rising from 14.1 percent to 73 cents from 64 cents in the second quarter of last year. Verizon reported strong growth in wireless customers, and now offers 4G LTE access to 301 million people across the U.S.

Verizon’s earnings beat analyst estimates of 72 cents, by one cent. Verizon's revenue grew 4.3% from the second quarter of 2012, up to $29.8 billion from $28.6 billion. Verizon’s $29.8 billion revenue was within analyst estimates.

There were 6.4 million 4G LTE devices activated in the second quarter. The wireless service saw an 8.3% year-over-year increase in revenue. Also, 941,000 postpaid wireless customers were added in the quarter,  and they now have a total of 94.3 million wireless customers.

Verizon also increased FIOS service by 14.7 % year-over-year, gaining 161,000 customers in Q2, a total of5.8 million subscribers.

Even though Verizon was in line with earnings, increased competition may deter from their profits; however, they also have the chance to make even more money with new technologies.

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