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Verizon Posts Earnings Beat and Lifts Guidance on Strong 5G Demand

Verizon posts stronger-than-expected third-quarter earnings and lifts its full-year forecast amid strong consumer demand for 5G-enabled devices and services.

Verizon Communications  (VZ) - Get Verizon Communications Inc. Report posted stronger-than-expected third-quarter earnings Wednesday and bumped up its full-year profit forecast amid strong consumer demand for 5G enabled devices and related services as well as for broadband.

Verizon said earnings for the three months ending in September were $6.5 billion, or $1.41 an adjusted share, up from $4.3 billion, or $1.25 an adjusted share in the year-ago quarter. Analysts polled by FactSet had been expecting earnings of $1.26 a share.

Revenue came in at $32.9 billion, up 4.3% from last year’s $31.5 billion and above FactSet consensus estimates of $33.2 billion. 

On the consumer side, revenue clocked in at $23.3 billion, up 7.3% driven by strong demand for 5G connectivity and related products, Verizon said.

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The company fared slightly poorer on the business side, with total Verizon business revenue coming in at $7.7 billion, down 0.8% year on year, as wireless revenue growth continued to offset ongoing legacy wireline declines, the company said.

“We had a strong third quarter, delivering on our strategy and growing in multiple areas,” said Verizon Chairman and CEO Hans Vestberg. “Our disciplined strategy execution demonstrated growth in 5G adoption, broadband subscribers and business applications."

Verizon updated its full-year financial guidance, saying it now expects total wireless service revenue growth of around 4%, the higher end of its prior guidance of between 3.5% to 4%. The company now expects adjusted per-share earnings of between $5.35 and $5.40, an update from its prior guidance of between  $5.25 to $5.35.

"We fully expect to have a strong finish to the year as we accelerate deployment of 5G to our customers across the country,” Vestburg said.

At last check, shares of Verizon were up 0.67% at $52.70 in premarket trading.