Verizon earnings miss – Shares down
Verizon Inc. is down over 4% after releasing disappointing Q4 results on Tuesday morning.
Net income fell to $4.5 billion, or $1.10 per share, in the quarter ended Dec. 31 from $5.39 billion, or $1.32 per share, the previous year.
Verizon’s operating revenue fell for the third straight quarter, to $32.34 billion, from $34.25 billion in the same period of 2015.
The company earned 86 cents per share, excluding items, which missed the average estimate of 89 cents per share.
Verizon’s deal to buy Yahoo Inc’s core assets has been cast into doubt by data breaches at the internet company and the wireless provider added less subscribers than expected in the latest quarter amid heightened competition from smaller rivals T-Mobile and Sprint Corp.
CFO Matt Ellis said in an interview that the company’s 167,000 phone subscriber additions were strong. “The biggest area where people were probably off was tablets,” he said. “We didn’t run as many tablet promotions this quarter.”
Tuesday’s selling pressure has put shares of Verizon at their lowest level since the beginning of December.