Verizon (NYSE: VZ) released their earning reports this morning for the second quarter. Despite growing more than 2% by adding new subscribers and beating analysts’ expectations by $0.04, Verizon is down 2.4% premarket.
This quarter, Verizon furthered a trend for the industry, focusing heavily on tablets for growth by adding a total of 852,000 tablets.
The wireless carrier also added 1.1 million postpaid wireless subscribers this quarter, netting more than the 1.06 million additions that analysts of Wells Fargo (NYSE: WFC) had expected. However, growth of the wireless carrier giant Verizon slowed since last year when they netted 1.4 million additions. Despite adding 1.1 million postpaid wireless subscribers, Verizon missed expectations of 588,000 postpaid phone additions, reaching only 321,000 additions, and missing the expectation by about 266,000 phones.
A factor crucial in contributing to Verizon’s growth was retaining their ongoing customers, lowering the cancellation rate by .04% (from .94% to .9), the lowest rate by far within the past three years.
The wireless carrier industry has seen incredible competition, as Sprint Corp. (NYSE: S) and T-Mobile Inc. (NYSE: TMUS) offer deals to subscribers to switch service providers, also offering more generous deals than the services Verizon already provides.
Verizon’s net profit margin is 7.70% and weekly performance is 1.91%, with a net income of 4.23 billion compared to 4.21 billion last year. They now have increased its cash from to 18.9 billion within the first half of this year, compared to 14.8 billion within the first half of last year.
Verizon expects to grow its revenue by 3% the remaining half of this year, while analysts estimate 3.3% growth.