Verizon Raises Annual Forecast on Strong Subscriber Additions
Verizon raised its annual forecast for adjusted profit and free cash flow after adding 184,000 wireless subscribers in the second quarter, surpassing analyst estimates of 103,900. The gains were driven by new unlimited 5G plans and rewards programs under CEO Dan Schulman.
Key Numbers
Verizon Communications (VZ) raised its annual forecast for adjusted profit and free cash flow, as the network provider's latest unlimited 5G plans and rewards programs helped it add more wireless subscribers than expected in the June quarter.
Key Financial Results
| Metric | Value |
|---|---|
| Wireless subscriber additions (Q2) | 184,000 |
| Analyst estimate (FactSet) | 103,900 |
The company did not report revenue or net income in this release.
Highlights from the Statement
The company is in the midst of a strategic transition under new CEO Dan Schulman, rolling out simplified mobile plans, a new loyalty program and bundled wireless-broadband offerings to improve customer additions after trailing rivals in subscriber growth.
Guidance
Verizon raised its annual forecast for adjusted profit and free cash flow but did not provide specific figures.
Impact on Stock
The strong subscriber growth and positive guidance are expected to support Verizon's stock, which had been underperforming due to weak subscriber additions compared to peers.
What This Means for Investors
Beating subscriber estimates and improving guidance suggest Verizon's new strategy may be starting to yield results. However, investors should watch for sustained growth in coming quarters.
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