Verizon stalls as subscribers fall short of estimates in third quarter, launches cost-cutting plan (NYSE:VZ)

Verizon (New York Stock Exchange: VZ) shares fell on Friday. That’s because the telecom provider reported mixed third-quarter results and said it would launch a cost-cutting plan to cut annual costs from $2 billion to $3 billion by 2025.

Hans Vestberg-led Verizon (VZ) significantly underestimated estimates by adding only 8,000 postpaid subscribers, and a total of 708,000 postpaid subscribers, comparable to AT&T (T.) Added during the same period.

The company adjusted $1.32 per share on earnings of $34.2 billion, beating estimates of $1.29 per share and $33.79 billion. Revenue attributed to wireless was $18.8 billion during the period, up 10% year-over-year.

New York City-based Verizon (VZ) also said it added 377,000 broadband subscribers, including 342,000 fixed wireless subscribers.

Verizon (VZ) shares fell about 1% in premarket trading to $36.67, nearing a 52-week low.

The company said it continues to expect 2022 wireless services revenue growth of between 8.5% and 9.5%, while expecting adjusted EBITDA to be flat to -1.5%. increase. Verizon (VZ) also reaffirmed its adjusted earnings-per-share guidance of between $5.10 and $5.25, versus analysts’ expectations of $5.17 for him.

In a release, Vestberg said the new cost-cutting program and pricing actions taken earlier this year show the company is “prudent and strategic in its decisions to strengthen its business.” said.

Verizon (VZ) will hold a conference call at 8:30 am to discuss the results.

Earlier this month, Verizon (VZ) underwent several restructurings, with the company’s top attorney, Craig Sillman, in charge of a new global services organization.