Verizon Shares Tank 4% In premarket Amidst Earnings ReportsVerizon Communications Inc., (NYSE: NYSE:VZ ) through its subsidiaries, engages in the provision of communications, technology, information, and entertainment products and services to consumers, businesses, and governmental entities worldwide saw it's shares dip nearly 5% in Tuesday's premarket session.
Verizon Communications (NYSE: NYSE:VZ ) reported a wider-than-estimated drop in phone subscribers outweighing first-quarter results that topped analysts' expectations.
The company posted adjusted earnings per share (EPS) of $1.19 on operating revenue of $33.49 billion. Analysts polled by Visible Alpha expected $1.15 and $33.33 billion, respectively.
Furthermore, the company reported retail postpaid phone net losses of 289,000 subscribers. Analysts were expecting a net loss of about 218,000 subscribers.
Verizon Chief Revenue Officer Frank Boulben said Last month at a conference that new subscriber figures in the quarter were "probably going to be soft," although he affirmed the company's forecast for wireless service revenue to grow by 2% to 2.8% this year.
Shares dropped nearly 5% immediately after the report. They entered the day up about 7% this year.
Shares of Verizon ( NYSE:VZ ) is close to breaking the strong support point holding the asset from nosediving. Should NYSE:VZ break below the $40 support? A selling spree might push shares of Verizon to the $37 support point.
However, all eyes are on the RSI at 42, should NYSE:VZ hold the bears from entering oversold region, a bullish reversal might evolved in the short to long term.
