Shares of Verizon Communications (NYSE: VZ) are slipping in Friday morning trading despite posting solid second quarter earnings that beat Wall Street estimates and officially naming a new chief executive officer.
As of 10 a.m. (EDT), Verizon shares were down 2.85 percent to trade at $36.51 per share.
Verizon posted net income was $1.61 billion, or 57 cents per share, for the three months ended June 30. In the comparable 2010 period, the company recorded a loss of $1.19 billion, or 42 cents per share. Also, revenue climbed by 2.8 percent to $27.54 billion from $26.77 billion a year ago.
The company’s results were buoyed by iPhone, which helped Verizon add more than 2.3-million net new subscribers on contracts. Verizon began selling the phones in February.
“In the second half of the year we expect Verizon to build on this strong, positive momentum to continue to drive profitable, sustainable growth,” Seidenberg said in a statement.
“In terms of earnings growth and the acceleration of revenue growth, this has been one of Verizon’s best quarters since the 2008 economic downturn. We expanded sequential margins in both our wireline and wireless businesses, and in the second half of the year we expect Verizon to build on this strong, positive momentum to continue to drive profitable, sustainable growth.”
However, according to reports, AT&T (which was previously the exclusive seller of Apple’s phone), still sells three iPhones for every two for Verizon
Verizon’s wireless business is 45 percent owned by Vodaphone.
Verizon also said that its chief operating officer Lowell McAdam will succeed Ivan Seidenberg as its CEO on Aug. 1. This succession had been expected for over a year. Seidenberg will remain as chairman.
Seidenberg praised his successor.
“His stellar leadership of Verizon Wireless and his outstanding 28-year career in the telecommunications industry have positioned Lowell to understand the potential of our company and the actions that need to be taken every day to attain that potential,” he said.