Verizon Gains On Revising Guidance As More Users Flock To 5G

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Investing.com – Verizon (NYSE:VZ) stock rose 2% in Wednesday’s premarket trading as the telecom operator revised its guidance for both earnings and revenue.

A subscriber base willing to pay more for high-speed 5G services and devices was behind the company giving a more promising outlook.

The company now expects annual wireless service revenue to grow between 3.5% and 4% as against 3% forecast earlier. Adjusted earnings per share for the year is now seen in the range of $5.25 to $5.35 compared to previous forecast of $5 to $5.15.

The company net added 275,000 subscribers on its postpaid service during the June quarter. Telecom companies prefer postpaid users as they are locked into monthly bills that carry certain fixed charges. Such users also tend to stick longer to a service.

The company also managed to milk every user more. Postpaid and prepaid revenue earned from each account rose 4.6% and 4.5%, respectively.

Total revenue in the June quarter rose 11% year-on-year to $33.8 billion. Net income climbed 23% to $5.94 billion and adjusted EPS was $1.37. Both revenue and EPS beat estimates.