The largest US mobile operator Verizon Communications in the second quarter increased its net profit by 22.9%, revenue by 10.9%. Revenue reached $ 33.764 billion against $ 30.447 billion a year earlier. Net income in April-June rose to $ 5.949 billion, or $ 1.4 per share, up from $ 4.839 billion, or $ 1.14 per share, in the same period last year. Earnings excluding one-off factors were $ 1.37 per share. The market consensus was for adjusted earnings of $ 1.3 per share on $ 32.8 billion in revenues.
Verizon’s revenue in the retail segment rose 11.2% last quarter to $ 23.477 billion. Net subscriber inflow was 368 thousand, according to the report. Business segment revenue increased by 3.7% to $ 7.762 billion. Net subscriber inflow was 178 thousand. Verizon confirmed its forecast that capital expenditures for the current year will be in the range of $ 17.5-18.5 billion. At the same time, the company has improved its estimate of adjusted earnings in 2021 to $ 5.25-5.35 per share from the previously expected $ 5-5.15 per share.
We believe Verizon’s focus on deploying next-generation 5G networks is a robust strategy that should drive sustainable revenue growth over the long term. The new generation communication format will cover almost all markets, with the first focus being on the markets that focus on modern high technologies. We raise our target price for Verizon shares from $ 66 to $ 68 on the back of strong quarterly results. We continue to like the company’s long-term business prospects and management’s dividend policy. Verizon’s dividend yield is currently estimated at 4.5%.
Verizon is one of the world’s leading providers of telecommunication services and solutions to individual, business, and government customers in the United States and in over 150countries around the world. Offerings are designed to meet customers demand for speed, mobility, security and control, include voice, data and video services on our wireless and wireline networks. Verizon has two reportable segments, Wireless and Wireline. Its wireless business, operating as Verizon Wireless, provides voice and data services and equipment sales across the United States using one of the most extensive and reliable wireless networks. Verizon’s wireline business provides consumer, business and government customers with communications products and services, including voice, broadband data and video services, network access, long distance and other communications products and services, and also owns and operates one of the most expansive end-to-end global Internet Protocol (IP) networks