Verizon Communications (NYSE: VZ) reported its first quarter 2019 results before market opened today. The telecom giant’s adjusted EPS of $1.20 beat analysts’ views of $1.17, while revenue of $32.13 billion missed consensus targets of $32.15 billion. Verizon stock was trading up about 1% in the pre-market trading as the company hiked its earnings outlook for FY19.
Verizon lifted its earnings guidance for FY19. The company now expects low single-digit percentage growth in adjusted EPS, excluding the impact of the new lease accounting standard. Earlier, the company had projected FY19 adjusted EPS to be similar to FY18, excluding the impact of the new lease accounting standard. Verizon also expects low single-digit percentage growth in full-year consolidated revenues on a GAAP basis.
On a GAAP basis, profit for the first quarter 2019 stood at $1.22 per share compared with $1.11 in first quarter of 2018. For the three months ended March 31, 2019, Verizon faced headwinds as a result of a reduction in benefits from the adoption of a revenue recognition standard, primarily due to the deferral of commission expense, and the adoption of a lease accounting standard. The combined impact was a 4 cent year-over-year headwind to EPS.
“2019 is shaping up to be an exciting year for Verizon. We are leading the world in the development of new technologies with the launch of our 5G Ultra Wideband network,” said CEO Hans Vestberg.
For the Wireless division, Verizon reported 61,000 retail postpaid net additions in 1Q 2019, consisting of 44,000 phone net losses and tablet net losses of 156,000, offset by 261,000 other connected device net additions, primarily wearables. Postpaid smartphone net additions were 174,000.
Wireline division revenues declined 3.9% year-over-year to $7.3 billion, as growth in high-quality fiber products was offset by pricing pressures on legacy products and technology shifts.
Verizon’s peer AT&T (T) will be reporting its first quarter results Wednesday before the market opens. AT&T stock is slightly up in today’s pre-market trading.
Verizon stock, which edged up 0.57% to $58.37 when market closed yesterday, had increased 4% since the beginning of 2019 and 22% in the past 12 months.