Updated from 1:09 p.m. EDT
, which had seen its shares lose about 15% this week, announced Friday that it expected its second-quarter earnings to be what its predecessor companies predicted.
Shares of Verizon reversed their downward trend Friday, finishing up 3 3/4, or 8%, at 48.
Verizon, the wireless combination of
created June 30, issued a statement to ease any investor concerns about its growth potential and profitability. It said it would most likely meet its prediction of 15% consolidated revenue growth for the second quarter. Analysts polled by
First Call/Thomson Financial
expected the New York-based company to post earnings of 77 cents a share.
"The performance of our companies in the second quarter gives us the confidence that we will be able to realize the strategic advantages of our merger to the fullest extent possible," Charles R. Lee, the company's chairman and co-chief executive, said in a statement.
Richard Klugman, who analyzes Verizon for
Donaldson, Lufkin & Jenrette
, said the company's shares were falling recently because of "a lot of speculation that they would have a lot of substantial downward earnings estimate revisions."
"The silence was deafening as the stock kept dropping a couple points every day," Klugman said, explaining the company's motivation to issue the statement.
The company said its preliminary second-quarter results show that it more than doubled the number of long-distance customers it attracted in the first quarter, adding 878,500 for a total of about 4.4 million. Subscribers to the company's high-speed digital subscriber line service increased 47% in the quarter to 221,000.
Verizon also said it accrued about 800,000 wireless net additions, about 21% more than a year ago, bringing its total wireless customers to about 25.6 million. Verizon's data revenue growth was more than 30%, and the company generated more than $3 billion in cash through the completion of previously announced asset sales.
Verizon is scheduled to announce its second-quarter results on Aug. 8.
At that time, the company will provide revised guidance about the goodwill associated with the assets contributed to Verizon Wireless -- a separate joint venture in April between
Bell Atlantic Mobile
and the U.S. assets of
-- by Vodafone and
PrimeCo Personal Communications
, another Bell Atlantic Mobile-Vodafone combination that was added to Verizon Wireless.
Verizon will also present revised information on conforming accounting practices to develop a unified approach for the combined company, as well as new guidance about the conditions of the
Federal Communication Commission's
approval of the merger. It will also discuss the effects of the separation of
, GTE's Internetworking business, from Verizon, and the deconsolidation of Genuity's results from Verizon's.
David Frail, a spokesman for Verizon, said the company could not say at this point whether its revised guidance would be positive or negative.
Although Verizon's projections Friday fell in line with earlier predictions, they have not necessarily silenced all the concerns of investors, said Klugman, who rates Verizon a market perform. The new guidance that the company plans to release at the Aug. 8 meeting "strikes me as a downward revision," he said.
Klugman said Verizon will most likely portray any issues surrounding its accounting or goodwill as "fairly benign," but he does not know at this point if that portrayal would be an accurate one.
Donaldson, Lufkin & Jenrette acted with several other firms as a co-manager for the offering that resulted in the
separation of Genuity from Verizon, Klugman said.