Verizon Shares Surge Over 3% Following Strong Q1 Performance
Verizon shares rise over 3% after first quarter sales beat expectations
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Verizon Communications Inc. shares increased by over 3% after the company reported better-than-expected first quarter results, including a net addition of 55,000 mobile subscribers. This marks the first positive growth in mobile users for the first quarter since 2013, signaling the effectiveness of new CEO Dan Schulman's strategy.
- 01Verizon added 55,000 net new mobile subscribers in Q1, a significant turnaround.
- 02The company's adjusted earnings per share reached $1.28, exceeding projections.
- 03Verizon's stock rose 2.87% to $47.72 in New York trading.
- 04The company forecasts annual phone subscriber growth between 750,000 and 1 million.
- 05Verizon's aggressive marketing strategy is aimed at long-term customer retention.
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Verizon Communications Inc. shares rose over 3% on Monday after the company announced its first quarter financial results, which exceeded analyst expectations. The carrier added 55,000 net new mobile subscribers, marking its first positive growth in this area since 2013, and a year-over-year increase of 340,000 subscribers. This performance contrasts sharply with analyst forecasts of a loss of approximately 89,169 subscribers. As of 12:54 p.m. EDT, Verizon's stock was up 2.87%, trading at $47.72. The company has also increased its full-year earnings outlook, projecting adjusted earnings between $4.95 and $4.99 per share and anticipating annual phone subscriber growth to reach the upper limit of its estimate of 750,000 to 1 million. Despite slightly missing revenue projections, Verizon reported record adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $13.4 billion. CEO Dan Schulman emphasized a shift in strategy towards long-term customer retention, moving away from low-margin promotional activities. The company also reported 341,000 net new internet additions, aided by the acquisition of Frontier Communications.
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Verizon's growth in subscribers and revenue could lead to improved service offerings and competitive pricing for consumers.
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