Verizon Communications Inc. (NYSE:VZ) released its earnings report for the second quarter of 2013 this morning before the market opened. The company showed earnings per share of $73 cents for the three months on revenue of $29.83 billion. Verizon Communications Inc. (NYSE:VZ) stock closed on yesterday’s market trading at $50.74 per share.
Optimism about the company’s earnings sent share prices up after market and pre-market trading. Analysts following the wireless carrier were looking for earnings per share of 72 cents per share for the three months ending June 30. The same analysts were expecting to see the company show revenue of $29.8 billion for the period.
In the same three months of 2012, Verizon Communications Inc. (NYSE:VZ) earned 64 cents per share on revenue of $28.6 billion. The company’s stock has been relatively poorly so far in 2013, making gains of 17 percent against the 18 percent gain in the S&P 500.
Despite the firm’s relatively poor performance in the first half of the year, Verizon Communications Inc. (NYSE:VZ) stock is still the best performing by far of the biggest mobile carriers in the United States. AT&T Inc. (NYSE:T) stock has gained just over 6.5 percent since January 1, while Sprint Nextel Corporation (NYSE:S) stock has gained just 10 percent in the same period.
Verizon Communications Inc. (NYSE:VZ) has been performing to spec so far in 2013. The firm’s first quarter earnings report showed a small beat on earnings per share. Investors are more than likely happy with Verizon and its sector beating stock performance.
The wireless market is changing all around Verizon Communications Inc. (NYSE:VZ), and that’s likely to impact the company’s strategy for the rest of 2013, and for years to come.
The recent deals which saw Sprint Nextel Corporation (NYSE:S) sold to Softbank Corp (PINK:SFTBF) (TYO:9984 and Leap Wireless acquired by AT&T Inc. (NYSE:T), as well as the recent public offering of T MOBILE US INC (NYSE:TMUS) show that consolidation and changing market structure are going to be major themes in the wireless market.
There’s talk of more change to come in the US carrier market, and Verizon Communications Inc. (NYSE:VZ) will have to adapt and change.
Verizon Communications Inc. (NYSE:VZ) executives will host a conference call at 8:30 am EST in order to discuss the impact of this earnings report. The change in the structure of the wireless market is sure to be a topic of conversation, as will the company’s guidance for the rest of 2013.