Verizon Exceeds Q1 Analyst Estimates Despite Missing On Subscriber Numbers - Verizon Communications (NYSE:VZ)

Verizon Communications Inc’s VZ first quarter of FY21 operating revenue rose 4% year on year to $32.9 billion, exceeding analyst estimate of $32.46 billion. The telecom giant reported 326,000 retail postpaid net losses.
Verizon adopted a conservative customer acquisition approach compared to AT&T Inc T and T-Mobile US Inc’s TMUS free-phone promotions, Bloomberg reports. Verizon remained focused on partnerships with Amazon.Com Inc AMZN and Corning Inc GLW to drive advanced 5G service sales.
Consumer revenues rose 4.7% to $22.8 billion from higher phone activations. Consumer wireless equipment revenues increased 24.1% to $4.2 billion. The segment operating income rose 3.3%, while the margin declined 50 basis points to 33%.
156,000 retail postpaid net additions drove the Business revenue growth of 1.3% to $7.8 billion. The segment operating income declined 5.8%, and the margin declined 80 basis points to 11.6%.
Wireless service revenue rose 2.4% to $16.7 billion, on the back of a loss of 170,000 monthly wireless subscribers; analysts estimated 82,100 new additions.
Media revenues rose 10.4% to $1.9 billion.
EPS rose 4% to $1.31, beating consensus estimates of $1.29.
The company generated $9.7 billion in operating cash flow during the quarter, and the capital expenditure amounted to $4.5 billion.
Verizon spent over $52 billion on mid-band airwaves last month to make them available to a third of the nation by early next year.
Outlook: Verizon expects a minimum of 2% growth in Service and other revenue, including total wireless service revenue growth of a minimum of 3% for FY21. EPS expectations lie between $5.00 to $5.15, against the analyst estimate of $5.08.
Price action: VZ shares traded lower by 0.22% at $58.26 on the last check Wednesday.

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