Shares of telecommunications giant Verizon Communications Inc. (NYSE:VZ) are 0.8% lower before the open following a bear note from Keybanc.
Verizon can't seem to get into growth mode.
Verizon's Q3 results exceeded EPS expectations but fell short on revenues. Shares undeservedly dropped 5% on Tuesday. VZ saw strong broadband subscriber growth and confirmed its wireless service revenue growth outlook for FY 2024. Despite high debt, the Company's solid dividend coverage ratio of 214% (based off of free cash flow) ensures a secure payout for dividend investors.
Verizon Communications Inc VZ stock rebounded Wednesday after a selloff following the third-quarter print Tuesday, also getting a boost from AT&T Inc's T quarterly print.
Verizon Communications Inc VZ reported mixed fiscal third-quarter results on Tuesday.
Verizon maintains a strong 6.5% dividend yield, comfortably supported by its free cash flow, despite stagnant financial growth and a declining share price. The company is expanding its mobility and fiber businesses, with the Frontier acquisition expected to bolster its fiber segment. Verizon's financials show flat revenue and slight EBITDA growth, but declining cash flow and a heavy $150 billion debt load remain concerns.
The telecom giant remains an attractive option for income-seeking investors.
Verizon chairman and CEO Hans Vestberg discusses the company's performance on 'The Claman Countdown.'
Goldman Sachs analyst James Schneider maintained a Buy rating on Verizon Communications Inc VZ with a price target of $52.
Verizon came up short on the top line in its earnings report.
Verizon Communications Inc. reported a somewhat mixed quarter, but the initial share price reaction suggests that the market was expecting more. Despite strong net additions in mobility, weak wireless retail postpaid performance and stagnant ARPA growth raise concerns. The quarter also shed some light on the company's recent decision to acquire Frontier Communications and why skepticism around the deal could be justified.
Verizon Communications Inc (NYSE:VZ, ETR:BAC) posted a revenue miss for the third quarter, sending its shares lower. Revenue for the period was $33.33 billion, shy of the $33.42 billion expected.