10:46 AM EDT, 10/22/2024 (MT Newswires) -- Verizon Communications' ( VZ ) third-quarter earnings came in ahead of Wall Street estimates but revenue missed expectations while the telecommunications giant saw higher postpaid phone subscriber additions year over year.

Adjusted earnings came in at $1.19 per share for the September quarter, down from $1.22 the year before, but topped the Capital IQ-polled consensus of $1.18. Operating revenue amounted to $33.33 billion versus $33.34 billion in the prior-year quarter, as growth in service and other revenue was more than offset by declines in wireless equipment. The topline figure was just shy of the Street's view for $33.42 billion.

Shares of the company fell 4% in Tuesday trading.

Wireless service revenue increased 2.7% year over year to $19.84 billion, mainly boosted by pricing actions implemented in recent quarters and gains in fixed wireless offerings, according to Verizon. Service and other revenue inclined 1.7% to $27.99 billion.

The company added 239,000 net retail postpaid phone subscribers in the quarter, up from 100,000 additions in the prior-year period. "Gross (additions) and churn both improved year-over-year and that drove phone net (additions) of 239,000 in the third quarter," Chief Financial Officer Anthony Skiadas said during an earnings call, according to a Capital IQ transcript. "That's a significant improvement year-over-year."

Broadband net additions totaled 389,000, down from 434,000 a year earlier. The company ended the quarter with 11.9 million broadband subscribers, representing an annual growth of 16%.

Total operating expenses rose to $27.4 billion from $25.86 billion last year. Verizon said it recorded $2.3 billion in charges during the quarter, including a severance charge of $1.7 billion mainly due to its voluntary separation program for select US management employees, as well as other headcount reduction efforts.

The company continues to expect adjusted EPS between $4.50 and $4.70 for 2024, while the Street is looking for $4.57. It also maintained its wireless service revenue growth outlook of 2% to 3.5%.

"We continue to deliver strong results in mobility and broadband, and we are on track to meet our full-year 2024 financial guidance, with wireless service revenue and adjusted (earnings before interest, taxes, depreciation and amortization) trending at or above the midpoint of the guided range," Chief Executive Hans Vestberg said in a statement.

Price: 41.78, Change: -1.92, Percent Change: -4.40