Shares of Verizon (VZ -0.15%) were heading lower today as the telecom came up short on the top line in its first-quarter earnings report. The company also lost postpaid net subscribers in the seasonally slow quarter.
As a result, the stock was down 3.4% as of 11:36 a.m. ET on Monday.
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Verizon misses on revenue
Verizon's first-quarter results weren't particularly troubling, but total revenue rose just 0.2% to $33 billion, which was below the analyst consensus at $33.24 billion.
Wireless-service revenue in the quarter was up 3.3% to $19.5 billion, though wireline and equipment revenue continued to fall.
Verizon also reported losses in retail postpaid net subscribers of 68,000, though that decline was better than expected, and the company added users to other devices as overall retail postpaid net additions rose 253,000.
Broadband growth was strong at 389,000 net additions, including 53,000 Fios additions, and it grew fixed wireless revenue, a strategic priority, by nearly 80% to $452 million.
On the bottom line, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) were $12.1 billion, up from $11.9 billion. Adjusted earnings per share (EPS) fell from $1.20 to $1.15, but that topped estimates at $1.12.
CEO Hans Vestberg said: "We are on track to meet our financial guidance and to deliver positive consumer postpaid phone net adds for the year. Our fixed wireless subscriber base is continuing to grow rapidly, and our network remains the best in the industry, so far."
What's next for Verizon
For the full year, the company sees similar trends, targeting wireless-service revenue growth of 2% to 3.5%, adjusted EBITDA growth of 1% to 3%, and adjusted EPS of $4.50 to $4.70, which compares to the consensus range of $4.58 and $4.71 in the quarter a year ago.
The sell-off was a bit surprising since the stock was up in pre-market trading, but the pullback might reflect a correction after the stock's gains over the last six months as investors adjust to a "higher for longer" interest rate environment and the reality that Verizon's earnings are still on track to decline this year.
