Wall Street opened higher Tuesday as investors cheered better-than-expected earnings results from Verizon and Comcast.
The Dow Jones Industrial Average climbed 54 points or 0.32 percent, to 17,105.73. The S&P 500 rose 8.82 points or 0.45 percent, to 1,982.30. The Nasdaq Composite gained 28.74 points or 0.65 percent, to 4,453.44.
Verizon Shares Edge Higher on Wireless Subscriber Additions
Ahead of the opening bell, Verizon Communications Inc. (NYSE:VZ) reported fiscal second-quarter 2014 earnings of $1.01 per share on revenue of $31.5 billion, compared with a profit of 78 cents per share on sales of $29.8 billion in the same period a year earlier.
Verizon, the largest U.S. wireless telecom company, recorded its highest quarterly revenue growth rate in the past six quarters. Total operating revenue in the second quarter was $31.5 billion, a 5.7 percent increase over the year-ago period.
Wall Street had expected Verizon to post a profit of 90 cents per share on revenue of $31.12 billion, according to Reuters.
Net income fell to $4.3 billion from $5.2 billion a year earlier.
“Verizon’s second-quarter results continue to demonstrate our ability to deliver strong customer growth, with equally strong financial performance, in a dynamic and competitive environment. We have great momentum heading into the second half of the year,” Chairman and CEO Lowell McAdam said in Verizon’s second-quarter earnings statement.
Meanwhile, the telecom giant added 1.4 million retail net connections, all of which were postpaid, in the second quarter, excluding acquisitions and adjustments.
The jump in wireless subscriber additions helped the company rack up better-than-expected quarterly revenue and EPS in the quarter ended June 30.
“We remain focused on profitable growth and on meaningful network investments that provide our customers with the best, and with a continuously improving, overall experience,” McAdam said.
Shares of Verizon on Tuesday edged up 0.02 percent to $50.71 after the U.S. markets opened.
Comcast Tops Street Estimates On Internet Subscriber Growth
Also ahead of the bell, Comcast Corporation (NASDAQ:CMCSA) reported fiscal second-quarter 2014 earnings of 76 cents per share on revenue of $16.84 billion, compared with a profit of 65 cents a share on sales of $16.3 billion a year-ago.
The company earned 75 cents per share, excluding gains on a sale and transaction-related costs.
Analysts had expected Comcast, the largest U.S. cable operator, to issue earnings of 72 cents, excluding items, on revenue of $16.95 billion, according to Reuters.
Net income rose to $1.99 billion from $1.73 billion a year earlier.
"We continue to see strong momentum across our cable and content businesses. In Cable, we posted the best second quarter customer results for both video and high-speed Internet in six years and saw tremendous demand for our X1 product, which is a truly transformative experience,” Chairman and CEO Brian L. Roberts said in the company’s second-quarter earnings statement.
In addition, Comcast said it saw strong momentum across its cable businesses. Revenue for the company’s cable communications business increased 5.4 percent to $11.0 billion while high-speed internet customers rose by 203,000, the best second-quarter net additions in six years.
Video customer net losses improved year-over-year and fell 144,000 compared to 162,000 a year earlier, Comcast said. However, the loss in net video subscribers for the period missed Street expectations of 123,000.
Meanwhile, NBC ended the broadcast season rated number one among adults between the ages of 18-49 in the quarter ended June 30. NBCUniversal revenue increased 0.3 percent and operating cash flow increased 20.4 percent.
“We are also pleased with the continued rapid growth of business services, which has quickly become an important engine for the company. NBCUniversal had another excellent quarter with double-digit operating cash flow growth driven by solid results in each segment and a first place finish for NBC for the 2013/2014 broadcast television season," Roberts added.
On Tuesday, shares of Comcast rose 1.53 percent to $54.65 in early trading.