Verizon Communications Inc. (NASDAQ:VZ) shares were in the green early Friday, after the tech conglomerate reported second-quarter results today highlighted by increased cash flow and strong momentum heading into the second half of the year.
The New York-based Verizon told investors Earnings per Share were $1.13, compared with $0.95 in second-quarter 2019. On an adjusted basis (non-GAAP), second-quarter 2020 EPS, excluding special items, was $1.18, compared with adjusted EPS of $1.23 in second-quarter 2019.
The company estimates that second-quarter 2020 EPS and adjusted EPS included approximately 14 cents of COVID-19-related net impacts, primarily driven by impacts to wireless service revenue and lower advertising and search revenue from Verizon Media. The company expects total wireless service revenue growth for third-quarter 2020 of -1 percent to flat year over year.
The company also recognized an aggregate tax benefit of $156 million in connection with a series of legal entity restructurings related to an internal reorganization, which resulted in an approximately four-cent benefit to second-quarter 2020 EPS and adjusted EPS.
CEO Hans Vestberg, “Through extraordinary circumstances, Verizon delivered a strong operational performance in the second quarter. We remain focused on our strategic direction as a technology leader, quickly adapting to the new environment and providing our customers with reliable and vital connections and technology services, while working to keep our employees safe and accelerating our 5G network deployment.”
Shares moved higher $1.32, or 2.4%, to $57.21.