Verizon Q1 earnings: 3 things customers should know

Shares of Verizon (VZ) are now moving lower on Monday, after initially seeing a small gain, as the telecom giant posted mixed first-quarter earnings results: adjusted earnings per share came out higher than expected ($1.15 per share against an expected $1.12), while revenue missed estimates ($32.98 billion against an expected $33.21 billion).

The company posted a lower-than-expected loss in postpaid phone connections, a loss of 68,000 phone customers while analysts anticipated losses of 100,000 subscribers. In addition, the report showed that the company's internet sign-ups are beginning to slow. Additionally, Verizon reaffirmed its full-year guidance, boosting investor confidence in the stock.

Yahoo Finance Anchor Madison Mills joins Wealth! to break down the latest development for Verizon and what it means for both consumers and investors going forward.

For more expert insight and the latest market action, click here to watch this full episode of Wealth!

This post was written by Angel Smith and updated by Nicholas Jacobino.

Video transcript

SEANA SMITH: Verizon, the telecom giant, reporting mixed results in its first quarter but lost fewer postpaid phone connections than expected, losing 68,000 as opposed to the 100,000 that analysts had anticipated. So better-than-expected results there. The company also saying that it is on track to meet its financial guidance and to deliver positive consumer postpaid phone net adds for the year.

And that line is really what the Street is excited about here this morning. You're looking at gains of just about 1 and 1/2%. I also want to point out that in their consumer segment here, that turned in its best first-quarter performance that we have seen in 2018. So certainly, Verizon highlighting some of that positive momentum that they are seeing within those businesses and areas where they had struggled amongst the rivals, really trying to retain their wireless consumers because we know many of their competitors have been out there with promotions that made it even tougher here for Verizon in this environment.

BRAD SMITH: Yeah, I sum this up as better than feared. And ultimately, you hear some of the commentary from Verizon chairman and CEO Hans Vestberg as well, saying that they're on track to meet their financial guidance and deliver positive consumer postpaid phone net adds for the year, so kind of reaffirming what they had already laid out.

However, within that business segment, I think for the 20% of the revenue base that that brings in, there is a little bit of a head scratcher that's still emerges, decrease of about 1.6% year over year in the revenue as increases in wireless service revenue were more than offset by decreases in wireline revenue and wireless equipment revenue, they say here. So perhaps they'll be able to give a little bit more color, shed a little bit more light on that B2B side of the business.

SEANA SMITH: Mm-hmm.

BRAD SMITH: But that is one area that I imagine that analyst is going to be right to ask a few questions to Verizon executives on the call.