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Verizon Communications Inc. Beats Earnings, Sirius XM Holdings Inc. Ups Guide

Verizon and Sirius XM released their latest earnings reports before opening bell this morning. Verizon posted adjusted earnings of 94 cents per share on $30.53 billion in revenue for the second quarter. Analysts had been expecting earnings of 92 cents per share on $30.84 billion. In last year’s second quarter, the company reported revenue of $32.22 billion.

Sirius XM posted adjusted earnings of 3 cents per share on $1.2 billion in revenue, compared to the consensus estimates of 4 cents per share and $1.22 billion. The company’s revenue grew 10% year over year to reach a record high for any quarter.

Verizon’s profits fall

Verizon Communications Inc. Beats Earnings, Sirius XM Holdings Inc. Ups Guide

Verizon’s consolidated earnings declined to 17 cents per share from $1.04 per share in the year-ago quarter. The company added 615,000 retail postpaid net subscribers and recorded a low retail postpaid churn rate of 0.94%. Verizon’s Fios revenue grew 2.7% to $2.8 billion. Although the company saw a net decline of 13,000 Fios Internet connections and 41,000 Fios video connections as a result of the worker strike. The company said the revenue growth in the segment was driven by a bigger customer base and demand for higher Internet speeds.

Verizon continues to grow its new Internet of Things revenue streams, which climbed 25% year over year to $205 million. Verizon Wireless generated $10.3 billion in segment adjusted EBITDA, which was a 3.8% increase from last year. Verizon Wireless revenue declined 4% to $21.7 billion due to customers opting for unsubsidized phone payment plans. The segment had about 31.8 million device payment plan phone connections, which made up approximately 37% of its postpaid phone base. Verizon Wireless had 74.6 million smartphone connections at the end of the quarter.

Verizon shares slipped 0.16% to $55.78 in premarket trading this morning.

Sirius XM raises guidance

Sirius XM

Sirius XM reported $468 million in adjusted EBITDA, which was a record quarterly high and an increase of 13% from last year’s $415 million.  The satellite radio provider added 587,000 net new subscribers during the quarter to surpass 30.6 million subscribers at the end of the quarter. Average revenue per user increased 3% to $12.78. Free cash flow also hit a new record during the quarter, reaching $395 million.

Sirius XM increased its guidance this morning as well. Management expects to add 1.6 million net new self-pay subscribers and 1.7 million total net new subscribers this year. Their previous outlook was for 1.4 million and 1.6 million, respectively. They expect revenue to approach $5 billion this year, compared to their previous guide of about $4.9 billion. Sirius XM projects about $1.8 billion in adjusted EBITDA, an increase from the previous estimate of about $1.78 billion.

Shares of Sirius XM rose 0.72% to $4.18 in premarket trading this morning.