Verizon announced a $3.5 billion charge to the company that will reduce earnings per share to $1.19, from $1, as part of the company closing out the third quarter.
The charge comes after Verizon’s net income fell short of Wall Street expectations, but it also comes as Verizon’s shares are still trading at record highs.
The earnings call, which was streamed live on Verizon’s website, was the first of the year for the company, and the first time the company will show results for the third-quarter.
Verizon said it will release the full earnings report on Wednesday.
Verizon is on pace to record a net loss of $1 billion in the third.
The company also reported a $1 million profit and net income of $2.4 billion.
The stock rose 2.9 percent to $22.20 in extended trading.
Verizon’s earnings report is not quite as expected.
The firm said that it had to make a $600 million charge to make up for a loss in the first half of the fiscal year.
It also said it had “slightly undersized our expectations for the amount of wireless revenue” in the fourth quarter.
Verizon shares are up almost 50 percent since the start of the second quarter.
Wall Street analysts had expected Verizon to post an earnings increase of 4 cents to $2 a share.
Wall St. is expecting Verizon to report a loss of 1 cent to $4.75 a share in the quarter.