Verizon Stock Sinks as Phone Subscriber Losses Exceed Forecasts

Verizon Communications (

VZ

) stock fell Tuesday after a wider-than-estimated drop in phone subscribers outweighed first-quarter results that topped analysts’ expectations.

Verizon posted adjusted
earnings per share (EPS)
of $1.19 on operating revenue of $33.49 billion. Analysts polled by Visible Alpha expected $1.15 and $33.33 billion, respectively.

The company reported retail postpaid phone net losses of 289,000 subscribers. Analysts were expecting a net loss of about 218,000 subscribers. Verizon added 339,000 broadband subscribers in the quarter, as it said its services continue to take market share in the industry.

Last month
, Verizon
Chief Revenue Officer
Frank Boulben said at a conference that new subscriber figures in the quarter were “probably going to be soft,” although he affirmed the company’s forecast for wireless service revenue to
grow by 2% to 2.8%
this year.

Shares were down 2.5% shortly after markets opened. They entered the day up about 7% this year.

Verizon affirmed its full-year guidance, as the telecommunications giant said it “remains confident” in its ability to meet its full-year goals, though the current forecasts do not “reflect any assumptions regarding the potential impacts of the evolving tariff environment.”

UPDATE—This article has been updated with the latest share price and broadband subscriber information.

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