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Verizon Higher as Postpaid Subscriptions Rebound, Outlook Raised

Verizon shares rose as the telecom behemoth reported more postpaid subscribers and raised its full-year earnings estimate.

Verizon Communications  (VZ) - Get Report shares rose Wednesday after the telecommunications behemoth posted a rebound in postpaid phone subscriptions and raised its earnings guidance.

Verizon reported a 275,000 net increase in those subscriptions for the second quarter, swinging from a loss in the first quarter. The latest figure tops the FactSet analyst consensus of 174,800.

The reopening of Verizon stores after the pandemic helped boost the number. Postpaid customers are important because they represent recurring revenue.

As for guidance, the company now expects adjusted earnings per share of $5.25 to $5.35 for full-year 2021, up from its prior estimate of $5 to $5.15.

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Verizon expects revenue from wireless services to grow 3.5% to 4% for the year, compared with its previous forecast of at least 3%.

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The stock recently traded at $56.66, up 1.9%. It had slipped 3% in the six months through Tuesday amid intense competition in the industry.

Net income reached $5.95 billion, or $1.40 a share, from $4.84 billion, or $1.13 a share, in the year-earlier quarter. The latest adjusted profit hit $1.37 a share, beating the consensus analyst estimate of $1.30, according to Refinitiv.

Operating revenue rose 11% in the second quarter to $33.76 billion from $30.45 billion a year earlier. The latest figure beat analysts’ prediction of $32.74 billion, according to IBES data from Refinitiv.

Last week, Verizon and Mastercard  (MA) - Get Report announced a partnership for global-payments technology. Terms weren't disclosed.

Mastercard will combine its own network with Verizon's 5G connectivity to drive solutions for the global-payments and commerce ecosystem.

The two companies plan to innovate in contactless shopping and autonomous checkout technology.