Verizon beats market expectations, beats estimates

The Verizon logo is seen on the 375 Pearl Street building in Manhattan, New York City, U.S. November 22, 2021. Verizon is aggressively expanding its 5 G services, exceeding its year-end target for high-bandwidth 5 G network nationwide, even though the telecom operator sees a delay in deployment of its lower-frequency spectrum impacting flights.

A third of consumer wireless phone users now have a 5 G-capable device, according to the telecom giant.

The number of new customers who pay a monthly bill is very valuable to the carriers, according to analysts and investors. Verizon's shares are up 0.6%, among the top gainers on the S&P 100 index OEXA that are trading before the bell.

Verizon expects adjusted EPS of $5.40 to $5.55 for the year 2022, above analysts' estimates of $5.39. The company expects wireless service revenue to grow between 9% and 10% in the year.

The company's total operating revenue was $34.1 billion in the quarter ended December 31, excluding the sale of Verizon Media, compared to estimates of $34.01 billion, according to IBES data from Refinitiv.

Verizon noted that revenue from legacy wireline products slowed down while wireless service revenue went up.

Net income was $4.7 billion, up marginally from a year ago. Excluding items, the company earned $1.31 per share, beating estimates of $1.28.