Verizon Communications (VZ) has lowered its profit forecast after the telecommunications
company added fewer-than-expected subscribers in the second quarter.
The wireless carrier said it added 12,000 net new subscribers in the quarter ended June 30.
Analysts had expected Verizon to add 150,800 wireless subscribers during this year’s second
quarter.
Still, the Q2 subscriber numbers where better than in the previous first quarter when Verizon
lost 36,000 subscribers.
Verizon blamed the slower-than-expected subscriber numbers on the price increases it has
implemented to help offset inflation that is at a 40-year high in the U.S.
Verizon is also competing aggressively for customers with rivals AT&T (T) and T-Mobile
(TMUS).
Verizon now says it expects 2022 earnings per share (EPS) in a range of $5.10 U.S. to $5.25
U.S., lower than a previous outlook of $5.40 U.S. to $5.55 U.S.
The company’s stock fell 5% on the lower subscriber numbers and is down more than 10% this
year at $47.66 U.S. per share.