As per the latest reports, the share prices of Verizon Communications have experienced a rise. The data shows that the rise in the price of shares was observed on Wednesday, July 21, 2021. The rise in the price of the shares was due to the recent announcement made by Verizon Communications.
Verizon Communications had reportedly made an announcement in regards to raising the earnings for the company. The telecommunication giant announced that it has experienced a significant rebound of subscriptions for postpaid phones.
The company has revealed that the number of postpaid phone customers has started rising for the platform. This is the reason why the company has increased its earnings guidance for the running year.
As a result, the company has observed an increase in the share prices and it is hoped that the prices would experience a further surge in the upcoming days.
Verizon Communications has just shared the subscription surge it has observed for the postpaid phones in the second quarter of 2021. The data shows a net increase of 275,000 has been observed for the particular subscriptions in Q2 2021.
The results shared by the company are surprising because, in the former quarter, Verizon Communications had announced that it had experienced a loss in terms of postpaid phone subscriptions.
According to Verizon Communications, in the first quarter of 2021, it had observed that the number of subscriptions had gone down.
Quite astonishingly, the second quarter has demonstrated a completely opposite performance than the former year. Based on the first-quarter results, the analysts had forecasted that 174,800 subscriptions would be observed in the second quarter of 2021.
However, the outcome has been completely different as the net increase of 275,000 subscribers has been observed in the second quarter. This is something very promising for Verizon Communications and the company is bound to experience a rise in its share prices.
The rise in postpaid phone subscriptions is mainly due to the reopening of the Verizon outlets after the pandemic. As the stores have started reopening, the customers have started visiting their nearest Verizon outlets to subscribe to the postpaid phones.
This is the main reason why Verizon Communications is currently experiencing a surge in its subscriptions. Eventually, this would help the company achieve higher revenues, earnings, and an increase in share prices.
Based on the performance from the first quarter of 2021, the earnings predicted by Verizon Communications per share would be between $5 and $5.15.
Following the rise in subscriptions, directly impacting the sales and revenue, the company has changed its predictions for the share price-earnings. The company is now aiming to earn between $5.25 and $5.35 per share.