Feb 03, 2011
Verizon Communications Incthe second-largest U.S. phone carrier, will buy back as many as 100 million shares to return cash to investors as demand for smartphones such as Apple Inc.’s iPhone boosts earnings.
The buyback is equal to about 3.6 percent of outstanding shares and would cost as much as $3.62 billion at yesterday’s closing price. Verizon is also canceling a previous share repurchase program set to end this month, according to a statement from the company today.
Last week, Verizon forecast revenue growth for this year that topped analysts’ estimates, as it sells more smartphones including the iPhone. The company started selling the iPhone to current customers today, ending AT&T Inc.’s U.S. monopoly on the device.
The new buyback plan is set to end Feb. 28, 2014, or when Verizon reaches 100 million shares. The company had approval to repurchase about 60 million shares remaining under the previous authorization.
Verizon rose 25 cents to $36.41 in New York Stock Exchange composite trading at 11:30 a.m. The New York-based company’s shares had gained 30 percent in the 12 months before today.
