Verizon (VZ) - Get Verizon Communications Inc. Report on Friday posted better-than-expected second-quarter earnings and sales as stability in its subscriber base linked to people's need to remain connected through the pandemic helped offset a drop in demand for new hardware.
The New York-based company said it earned $1.18 an adjusted share, down from an adjusted $1.23 a share a year earlier but better than FactSet forecasts of $1.15 a share. Revenue rang in at $30.4 billion, down 5.1% from the year-ago quarter though better than analysts' estimates of $29.93 billion.
A stable subscriber base supported by consumer demand to remain connected and online through the pandemic helped drive the results, though that was offset by lagging advertising revenue and a drop in sales of wireless equipment, "primarily due to limited in-store engagement and the impact of Covid-19 on customer behavior."
Total wireless service revenue fell 1.7% to $15.9 billion. Consumer wireless service revenue was $21.1 billion, a 4% year-over-year decrease, though the figures include impacts related to reduced roaming, usage, and waived fees due to Covid-19, the company said in a statement.
On the business wireless segment side, Verizon had total revenue of $7.5 billion, a drop of 3.7% year over year.
In its media business, revenue fell 24.5% from a year earlier, though the company did point to “increased customer engagement” on its media properties.
Looking forward, the company said it remains on track for adjusted per-share earnings growth of between -2% and 2%, with capital spending in the range of $17.5 billion to $18.5 billion.
Shares of Verizon were up 2.79% at $57.45 in trading on Friday.