BofA Breaks Down Verizon's Q2 Earnings Beat

Verizon Communications Inc. VZ reported second-quarter results before the market open Friday, and they were mostly ahead of expectations, according to BofA Securities.

The Verizon Analyst: David Barden maintained a Buy on Verizon Communications with a $64 price target.

The Verizon Thesis: Verizon reported second-quarter earnings of $1.18 per share, beating the consensus estimate of $1.15 per share, Barden said in the note. 

Consolidated revenue came in at $30.4 billion, slightly higher than the Street expectations of $30 billion, while adjusted EBITDA was in-line at $11.5 billion.

In the wireless segment, Verizon added a net 352,000 postpaid accounts, sharply higher than the consensus estimate of 240,000.

Among these were 173,000 new postpaid phone customers, and the postpaid phone churn of 0.58% was better than expected.

Wireless service revenue came in at $15.95 billion, marginally missing the Street expectation of $16.1 billion.

In the consumer segment, the company added a net 97,000 postpaid accounts, much better than the Street expectations of a 17,000 decline.

Postpaid phone churn of 0.51% was better than expected. Consumer revenue came in at $21.1 billion, versus the consensus estimate of $20.7 billion. Service revenue stood at $15.9 billion, a tad lower than the Street expectations of $16 billion.

The company maintained its adjusted earnings growth guidance of negative 2% to positive 2%, implying a range of $4.72 to $4.90 per share, according to BofA Securities. 

VZ Price Action: Shares of Verizon Communications were trading 0.82% higher at $56.35 at the time of publication.

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