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Investing.com – Verizon stock (NYSE:VZ) traded nearly 1% higher in Wednesday’s premarket as the telecom company brought in more users seeking its 5G services in the third quarter.
A higher dividend for the 15th consecutive year and a higher annual guidance also boosted the stock.
The company reaped the benefit of a wider 5G network, ever-broadening content and more phones offering high-speed services. The company added 429,000 postpaid phone subscribers in the quarter and the company closed the quarter with more than 25% of wireless phone customers having 5G-capable devices. At the end of September, the company had 122 million total retail connections.
Total broadband net additions, including wireline and fixed wireless, numbered 129,000.
Total third-quarter wireless service revenue rose 4% on-year to $17.1 billion, driven by higher access revenue, volume growth and products.
Total revenue declined 0.8% to $7.7 billion. The company said wireless revenue growth continues to offset ongoing legacy wireline declines.
Consolidated operating revenue jumped 4.3% to $32.9 billion. The sale of the Verizon Media business boosted profits and adjusted earnings per share of $1.41 topped estimates. The company factored in two months of revenue from the sold operations.
The company is now guiding for total wireless service revenue growth at the top end of its previous guidance of 3%-4%. Adjusted EPS is also seen higher than previously.
