Shares of Verizon fell nearly 5% in premarket trading Friday after the company reported second-quarter earnings that missed expectations and trimmed its financial forecast for the year.
“Although recent performance did not meet our expectations, we remain confident in our long-term strategy,” Verizon CFO Matt Ellis said in a release.
Shares of Verizon were down 5% at $45.40.
Verizon’s quarterly results came after AT&T on Thursday said its cash flow in the second quarter was hurt by factors including customers waiting longer to make their phone payments.
In its updated guidance, Verizon said it now expects wireless service revenue to increase 8.5% to 9.5%, down from its earlier expectations for growth of 9% to 10% for the full year. Service and other revenue is now expected to be down 1% to flat. It previously said it expected that revenue to be flat.
Verizon also said full-year adjusted earnings are now expected to be $5.10 to $5.25 per share, down from the company’s previous forecast of $5.40 to $5.55. The company said it expects adjusted EBITDA to be down 1.5% to flat, down from its previous forecast for growth of 2% to 3%.
For its second quarter, Verizon said its cash flow was hurt by increased inventory in the current economic environment. It said its operating income in its consumer segment was hurt by higher promotional activity.
For the three months ended Jun 30, Verizon reported revenue of $33.79 billion, which was relatively flat from the year-ago period. Analysts were anticipating revenue of $33.75 billion, according to Refinitiv.
Adjusted earnings were $1.31 per share. That was a penny shy of the $1.32 analysts expected, according to Refinitiv.