Verizon beats earnings estimate, revenue misses

Verizon grew its wireless and FiOS Internet businesses to a successful second quarter of 2015, the telecom company said Tuesday.

Verizon (VZ) reported earnings per share of $1.04, beating analysts' expectations of $1.01, according to FactSet. Revenue of $32.2 billion rose 2.4% over last year, but just missed expectations of $32.495 billion.

Quarterly net income of $4.35 billion, rose slightly (0.7%) from $4.32 billion in second-quarter 2014.

Shares closed Tuesday down 2.35% at $46.97.

Wireless revenues rose 5.3% to $22.6 billion, with 1.1 million net new postpaid subscribers added. That brings Verizon's total wireless retail subscribers to 109.5 million, up nearly 5%.

Verizon FiOS additions helped drive wired revenue up 4.5% to $4 billion, with total FiOS revenues accounting for $3.4 billion, up 10%. Verizon added 72,000 new FiOS Internet subscribers and 26,000 FiOS video subscribers. That brings Verizon's totals to 6.8 million FiOS Internet and 5.8 million FiOS Video customers, up 8% and 6%, respectively.

"In the second quarter, we again balanced quality Verizon Wireless connections growth with low churn and profitability, and we announced and completed our acquisition of AOL," said Verizon Chairman and CEO Lowell McAdam in a statement accompanying the earnings release. "We're now poised to offer customers exciting new over-the-top (OTT) mobile video services, and we look forward to a very positive second half of 2015."

This is the first earnings report from Verizon since it acquired AOL in June. The telecom company plans to launch a new mobile video service this summer.

Verizon forecast improved year-over-year revenue growth for the third quarter of 2015 and growth of at least 3% for the full year.

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