Verizon shares fall after company cuts full-year forecast

A Verizon store in San Francisco, California, United States, on Tuesday, July 20, 2021.

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Shares of Verizon fell nearly 5% in pre-market trading on Friday after the company reported second-quarter earnings that missed expectations and cut its financial forecast for the year.

“While recent performance has not lived up to our expectations, we remain confident in our long-term strategy,” Verizon Chief Financial Officer Matt Ellis said in a statement.

Shares of Verizon were down 5% at $45.40.

Verizon’s quarterly results are out later AT&T on Thursday reported its cash flow in the second quarter was influenced by factors including longer wait times for customers to make payments over the phone.

In its updated guidance, Verizon said it now expects wireless services revenue to grow 8.5% to 9.5%, down from its previous expectation of 9% to 10% growth for the entire year. five. Services and other revenue are now expected to drop 1% to flat. Earlier, it said it expected revenue to be flat.

Verizon also said full-year adjusted earnings are now expected of $5.10 to $5.25 per share, down from the company’s previous forecast of $5.40 to $5. .55 dollars. The company said it expected adjusted EBITDA to fall 1.5% to flat, down from its previous growth forecast of 2% to 3%.

For its second quarter, Verizon said its cash flow was impacted by increased inventory in the current economic environment. It shows their operating income in the consumer segment affected by higher promotional activity.

For the three months ended June 30, Verizon reported revenue of $33.79 billion, relatively flat compared with the same period a year ago. Analysts predict revenue of $33.75 billion, according to Refinitiv.

Adjusted earnings were $1.31 per share. According to Refinitiv, that’s a low from the $1.32 that analysts expected.

Read the full earnings report here.

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