Verizon Communications Inc. (NYSE:VZ) has reported $33.8bn in operating revenue, which is up 10.9% on last year and 5.3% on 2019. Management attributed this to “wireless revenue growth, strong Fios and Verizon Media results, and increased wireless equipment revenue.”
Operating profits also rose 10.9% to $8.2bn, and underlying earnings per share rose from $1.18 to $1.37.
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Management has raised guidance for underlying earnings per share from $5.00-$5.15 to $5.25-$5.35 for the full year.
The shares rose 1.4% in pre-market trading.
Verizon Communications Raises Full Year Guidance
William Ryder, Equity Analyst at Hargreaves Lansdown:
“Verizon’s been recovering reasonably well. Operating revenue is ahead of where it was before the pandemic, buoyed by a rebound in mobile phone sales now shops are open again. As a result, management has shown it’s confident enough to raise full year guidance.
The group’s not had it all its own way though. Free cash flow is down after thanks to taxes and adverse working capital movements, and the investment needs of the business are still as eye watering as ever. It’s also worth remembering that most of this quarter’s figures are flattered by the comparison with 2020 when the pandemic was in full force. Over two years, the growth looks less impressive. The challenge will be to keep growing going forward.”
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