Verizon Communications Shares Plunge 6% Following Q2 Results

Verizon Communications Inc. (NYSE:VZ) shares dropped more than 6% on Friday following the company’s reported Q2 results, with EPS of $1.31 coming in worse than the consensus estimate of $1.33. Revenue was $33.8 billion, compared to the consensus estimate of $33.71 billion.

The company continues to lose mobile share as it is priced 20%-plus below its peers with lower handset subsidies and much higher margins.

The company is now back to offering existing subs an $800 handset subsidy, which appears to be the primary driver of market share. It also introduced a new low-tier “Welcome Unlimited” plan at $30/month for four lines, with restrictions as it does not want to reprice its base.

The company provided its full 2022-year guidance, expecting EPS to be in the range of $5.10-$5.25, worse than the consensus estimate of $5.41.