Verizon Communications Inc. (NYSE: VZ), the largest U.S. wireless carrier, reported it topped quarterly estimates for profit and revenue on Tuesday attracting more subscribers on their unlimited data plans. The report revealed Verizon added 398,000 subscribers while analysts, according to Reuters, had an average estimate of 352,000 subscribers.
Due to higher equipment revenue trends, Verizon expects revenue growth through the year to be in the single-digit percentage rates. The Company has been developing its 5G network and plans to utilize the service in three to five U.S. markets this year. Analysts say one of their recent decisions to position its Chief Technical Officer, Hans Vestberg, to become the new Chief Executive Officer starting August 1st, could signal its focus on the network.
Shares has fallen over 4% this year, but they were up 2.4% at USD 51.98 during premarket trading upon the news. Net income for Verizon dropped to USD 4.12 Billion from USD 4.36 Billion in the second quarter from the previous year. Their operating revenue increased to USD 32.20 Billion, beating estimates for USD 31.78 Billion. For the adjusted numbers, the Company earned USD 1.20 per shares over the analyst estimate of USD 1.14 per share.
During the quarter, Verizon lost 37,000 Fios videos subscribers and added 43,000 Fios internet consumers. The next largest U.S. carrier, AT&T, is expected to report results after the close of trading on Tuesday.