Verizon shares drop after the company lowered its full-year forecast

A Verizon store in San Francisco, California, United States, on Tuesday, July 20, 2021.

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Verizon shares It fell nearly 5% in pre-market trading on Friday after the company reported second-quarter earnings that missed expectations and slashed its financial forecast for the year.

“Although the recent performance did not meet our expectations, we remain confident in our long-term strategy,” Verizon Chief Financial Officer Matt Ellis said in a statement.

Verizon shares fell 5% to $45.40.

Verizon’s quarterly results came next AT&T said Thursday cash flow In the second quarter of the year due to factors including customers waiting longer to make their payments over the phone.

In its updated guidance, Verizon said it now expects wireless service revenue to increase 8.5% to 9.5%, down from its previous forecast of 9% to 10% growth for the full year. Services and other revenue is now expected to decline by 1% to a flat level. It said earlier that it expects revenue to stabilize.

Verizon also said that full-year adjusted earnings are now expected to be between $5.10 and $5.25 per share, down from the company’s previous forecast of $5.40 to $5.55. The company said it expects adjusted EBITDA to fall 1.5% to flat, down from its previous forecast of 2% to 3% growth.

In the second quarter, Verizon said its cash flow was hurt by increased inventory in the current economic environment. It said its operating income in the consumer segment was hurt by the rise in promotional activity.

For the three months ending June 30, Verizon reported revenue of $33.79 billion, which was relatively flat over the same period last year. Analysts had expected revenue of $33.75 billion, according to Refinitiv.

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Adjusted earnings were $1.31 per share. That was a penny shy of the $1.32 analysts had expected, according to Refinitiv.

Read the full earnings report here.

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