(CercleFinance.com) – Verizon announced on Friday that it has lowered its financial objectives for the 2022 financial year after posting a disappointing performance in the second quarter.
The American telecom operator says it only expects growth of 8.5% to 9.5% in its mobile revenues this year, against a previous forecast which ranged from 9% to 10%.
Due to this less sustained activity than expected, the group is now targeting earnings per share (EPS) of 5.10 to 5.25 dollars, instead of the 5.40-5.55 dollars previously envisaged.
In its second quarter, Verizon posted net income down 10.7% to $5.3 billion, for adjusted operating income (EBITDA) down 2.6% to $11.9 billion.
Turnover remained stable overall, around 33.8 billion dollars, in line with market expectations.
At 1.24 dollars, EPS is well below the consensus of 1.32 dollars which had been established by analysts.
“While our recent performance has not met our expectations, we remain confident in our long-term strategy,” said Matt Ellis, the group’s chief financial officer.
Verizon gained only 12,000 net mobile subscribers in the second quarter, a figure illustrating the slowdown in its activity.
In pre-market, the title Verizon was down almost 5%.
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