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Verizon falls after adding fewer subscribers than expected

Akin Oyedele   

Verizon falls after adding fewer subscribers than expected
Stock Market2 min read

Verizon on Thursday reported third-quarter earnings results that topped analysts' forecasts for profits, but trailed expectations for subscriber growth.

The company's adjusted earnings per share was $1.01, slightly higher than the median estimate of $0.99 according to Bloomberg. Operating revenue came in at $30.9 billion, just under the forecast for $31.1 billion.

The results also showed that Verizon continues to face strong competition from rivals in the video and telecommunications industry.

Verizon said net additions for Fios video totaled 36,000, but analysts had estimated a gain by 59,000. At the same time, demand for higher internet speeds increased, reflecting the shift away from traditional cable-TV bundles and towards more customizable streaming services.

The surplus of people who signed up for postpaid phone service less those who ditched Verizon for another network was 442,000. But analysts were looking for a much higher net addition of 875,000. The company's wireless revenue fell 4% year-over-year to $22.1 billion.

Verizon shares fell 2% in pre-market trading after the company released its earnings. They gained 9% this year through the close of trading on Thursday.

Earlier this week, Yahoo CEO Marissa Mayer tried to reassure investors that the $4.8 billion deal with Verizon was still on track, despite a massive security breach at the internet company that has thrown the acquisition into question.

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