Telecommunications giant Verizon Communications (VZ 0.90%) reported results for the second quarter of 2014 this morning, with shares falling in pre-market trading as much as 1.5% on the news.
Verizon recorded sales of $31.5 billion, 6% above the year-ago quarter. Adjusted earnings rose 25% year-over-year to $0.91 per share. This figure backs out a one-time gain of $434 million after taxes, related to the recently closed sale of A-block wireless spectrum licenses to T-Mobile US.
Analysts were looking for earnings of $0.90 per share on $31.1 billion in sales. Verizon edged past both of these consensus targets.
Verizon Wireless added 1.4 million net retail subscribers during the quarter, bringing the total subscriber count to 104.6 million; 98.6 million of these are postpaid contract subscribers. Average revenues per postpaid account increased 4.7% to $160 per month. All of Verizon's wireless additions were postpaid in the second quarter.
The company added 139,000 new FiOS broadband customers, including 100,000 FiOS video subscribers. FiOS revenues rose 14.4% year-over-year. Traditional phone line subscribers continued to sign out, effectively erasing the strong FiOS gains. All told, wireline sales grew just 0.3% year-over-year.
Verizon left its full-year revenue guidance unchanged, pointing to 4% annual growth. Analysts have already set their expectations accordingly.
"We have great momentum heading into the second half of the year," said Verizon CEO Lowell McAdam in prepared remarks. "We remain focused on profitable growth and on meaningful network investments that provide our customers with the best, and with a continuously improving, overall experience."
