Verizon Communications Inc (NYSE: VZ) stock traded higher Tuesday after it reported second-quarter FY23 results.
It clocked a sales decline of 3.5% year-on-year to $32.6 billion, missing the consensus of $33.3 billion. Adjusted EPS of $1.21 beat the consensus of $1.16.
Total wireless service revenue was $19.1 billion, up 3.8% Y/Y, reflecting the company's ownership of TracFone, premium Unlimited strategy, and pricing actions. Postpaid phone net additions were 8,000, and retail postpaid net additions were 612,000.
The quarter marked 418,000 total broadband net additions reflecting strong demand for fixed wireless and Fios products.
Total Verizon Business revenues were $7.5 billion, down by 1.9% Y/Y. Total Verizon Consumer revenue declined by 4.1% Y/Y to $24.6 billion.
Consumer wireless retail postpaid churn was 0.95%, and wireless retail postpaid phone churn was 0.76%.
Verizon Consumer clocked wireless retail postpaid phone net losses of 136,000. Verizon Consumer had fixed wireless net additions of 251,000.
The consumer segment EBITDA margin improved by 260 bps 43.1%, attributed to service revenue growth and lower upgrade volumes, while the business segment EBITDA margin declined by 100 bps to 21.9%, driven by continued declines in high-margin wireline revenues.
Adjusted EBITDA of $12.0 billion was up 0.8% Y/Y.
"In the second quarter, we showed progress in our key priorities of growing wireless service revenue, delivering healthy consolidated adjusted EBITDA, and increasing free cash flow," said Chairman and CEO Hans Vestberg. "We look forward to extending our network leadership in the second half of the year by continuing our rapid C-Band deployment as we are laser-focused on providing value to our customers."
FY23 Outlook: Verizon reiterated wireless service revenue growth of 2.5% - 4.5%.
Verizon reiterated its adjusted EPS outlook of $4.55 - $4.85 versus the consensus of $4.68.
Price action: VZ shares traded higher by 2.91% at $34.98 in premarket on the last check Tuesday.