Verizon Communications Inc., the largest U.S. wireless carrier, exceeded analysts’ first-quarter profit estimates even as the company was forced to give away tablets to counter the popularity of smaller rival T-Mobile US Inc.
Earnings excluding some items were $1.02 a share, the New York based company said in a statement. That compares with the 95-cent average of estimates compiled by Bloomberg. Sales rose to $32 billion, while analysts had projected $32.3 billion.
Phone discounts and tablet promotions helped Verizon attract subscribers 565,000 monthly subscribers.
“This is surprisingly positive given that they have been pulling forward their spending earlier in the year to retain customers. This is a good sign for the remainder of the year.” said Kevin Roe, an analyst with Roe Equity Research in Dorset, Vermont.
Verizon shares rose 0.5 percent to $49.65 in early trading in New York. While the stock dropped 4.8 percent last year, it has gained 5.6 percent this year through Monday.
No comments:
Post a Comment