Verizon Communication Inc., the New York-headquartered second-largest wireless data carrier in the United States, had missed Wall Street estimates for both operating profits and revenues during fiscal fourth quarter of the year that ended on December 31, 2020, while the American data carrier having had holdings in 2,330 locations across the country had told that the company added fewer post-paid phone subscribers than estimated earlier in the fourth quarter, suggesting an unprecedented homecoming of a fierce competition from T-Mobile US Inc alongside AT&T Inc.
On top of that, Verizon, founded back in the 2000s in Bedminster, New Jersey, had also added on its quarterly earnings’ report for Q4, 2020, that the New York-based data carrier had gummed up 279,000 new post-paid phone subscribers over the last quarter of 2020, well below an analysts’ estimate of 443,100, data from Factset had revealed.
Verizon misses Q4 profit estimates as consumers rethink spending
In point of fact, there had been a couple of key fundamentals that appeared to have prodded the plunge on Verizon’s fourth-quarter quarterly earnings, while an upscaled economic uncertainty surrounding the pandemic outbreak had forced consumers to rethink their expenses and an onset of a fifth-gen era coupled with a rollout of 5G iPhones in the US, might have encouraged consumers to explore available options from three heavy-weight carriers before settling on.
Meanwhile, according to Verizon Communication Inc.’s quarterly earnings’ report revealed on Tuesday, the second-largest data carrier in the US had clocked a 0.2 per cent decline in total operating revenues to $34.7 billion, down from an analysts’ estimate of $34.43 billion, while Verizon’s net income over the fourth quarter of 2020 dropped to $1.11 per share or $4.72 billion, compared to a net income of $1.23 per share or $5.22 billion registered at the same time a year earlier.
In tandem, after drooling as much as 3 per cent in Tuesday’s pre-market trading, shares’ prices of Verizon Communications dropped more than 5 per cent to $55.43 apiece over the past two sessions, marking up the lowest level since mid-2020.