Verizon posts earnings of 94 cents a share vs. 92 cents expected

Verizon earnings hurt by strike

Verizon Communications reported quarterly earnings Tuesday that beat analysts' expectations, but narrowly missed on revenue.

The company posted second-quarter earnings per share of 94 cents, beating analysts' expectations. Revenue for the quarter came in at $30.53 billion, missing the Street's estimate.

Analysts had expected earnings of about 92 cents a share on $30.94 billion in revenue, according to a consensus estimate of Thomson Reuters.

Shares of the company fell slightly in premarket trading.

The earnings and revenue numbers were down from the year-earlier period, which saw earnings of $1.04 a share on revenue of $32.22 billion.

The telecommunications giant saw growth in its wireless division, reporting 615,000 retail postpaid net additions in the quarter, according to a company release. At the end of the second quarter, Verizon reported 113.2 million retail connections, a 3.3 percent year-over-year increase.

In addition, the company grew total revenues for its Fios fiber-optic based services by 3.7 percent from the year-earlier period.

The quarter included a seven-week strike of nearly 40,000 employees that Chief Financial Officer Fran Shammo would hurt second-quarter earnings and potentially cost up to 7 cents per share.

In its earnings release, that prediction rang true, with Verizon reporting that quarterly earnings were negatively impacted by about 7 cents due to the work stoppage. The company also noted it anticipates cash savings of $500 million over the term of its recently negotiated labor contracts.

The company has had significant growth in recent years. On Monday, it announced plans to acquire Yahoo for $4.8 billion and last year it purchased AOL for $4.4 billion.

"Verizon's second quarter shows that the company continues to deliver strong results while evolving operations," Chairman and CEO Lowell McAdam said in a statement. "By acquiring Yahoo, we will dramatically accelerate the timetable for scaling up to be a major competitor in mobile media. Yahoo is a complementary business to AOL, giving us market-leading content brands and a valuable portfolio of online properties and mobile applications."