topped estimates with its second-quarter profit Monday, but shares were under pressure after the telco shop failed to exceed revenue targets.
The New York phone giant recorded net income of $1.88 billion, or 66 cents a share, which rose from $1.68 billion, or 58 cents a share, in the year-ago quarter. Adjusted for one-time items, Verizon said it had a profit of 67 cents a share, which is 2 cents better than the Thomson Reuters average estimate.
Sales rose 3.7% from a year ago to $24.12 billion, but that figure fell just shy of Wall Street's expectations. Analysts had been looking for a $24.17 billion top line. Rival
, which reported earnings Wednesday, also came up short on second-quarter revenue.
Verizon shares dipped 26 cents, or 0.8%, to $34.19 in early trading Monday. AT&T was unchanged at $31.40.
"Our second-quarter results were on track with our business plan, and top- and bottom-line growth remained solid," said CEO Ivan Seidenberg in a release. "We remain focused on steady improvements in revenue growth and productivity that will increase profitability and cash flows and create future opportunities to enhance shareholder returns."
Verizon Wireless -- jointly owned by Verizon and
-- continued to show strength, adding 1.5 million net subscribers in the second quarter. The monthly customer defection rate remained at an industry low 1.12%, with post-paid churn slightly below 1%. The wireless unit generated revenue of $12.1 billion, up 11.8% year over year.
On the wireline side, Verizon's core business continued to erode. Wireline revenue fell 1.8% from a year ago to $12.1 billion as customers disconnected second lines or shifted to competing services.
The company also added 176,000 net new FiOS TV customers, taking the total to 1.4 million at the end of the quarter. Verizon said it gained 187,000 fast Internet subscribers, coming close to topping the 2 million mark for fiber-optic connections, nearly doubling the amount of customers it had at the end of the second quarter in 2007.