However, the weakness in the wireline business, caused mainly by the availability of cheaper alternatives, is likely to dampen the quarterly results. The company is also being negatively impacted by the rising cord-cutting trend and this is likely to be reflected in the third quarter results.
During the quarter, Verizon announced the sale of Tumblr to Automattic for undisclosed terms. Any updates on further strategic changes will be worth noting.
On Tuesday, Verizon announced an agreement with The Walt Disney Company (NYSE: DIS) to offer its wireless unlimited, Fios Home Internet and 5G Home Internet customers a year’s service of Disney+. This move is likely to benefit both companies significantly.
Also read: Verizon Q2 2019 Earnings Conference Call Transcript
In the second quarter of 2019, Verizon beat earnings estimates but revenues missed the mark. Revenues dropped slightly to $32.1 billion from the prior year while adjusted EPS rose 3% to $1.23. Wireless revenues increased 1% while wireline revenues fell 5%.
For full-year 2019, Verizon expects both consolidated revenues and adjusted EPS to grow in low single digits.
Shares of Verizon have gained 10% thus far this year. The stock was up slightly in morning trade on Wednesday.
Verizon’s main competitor AT&T (NYSE: T) will report third quarter earnings on Monday, October 28.