VZ remains a compelling Buy due to its increasingly richer dividend yields, thanks to the market's overreaction to the top-line FQ3'24 miss. The telecom's core wireless services segment continues to perform well, with stable gross margins and increasing ARPA, as myPlan grows in popularity. VZ's reiterated forward guidance and raised consensus estimates imply continued top and bottom-line expansion, with it supporting the safe dividend investment thesis.
Verizon's stock has shown bullish stabilization post-2023 trough, but still underperforms YTD compared to the S&P 500, suggesting potential gains through mean reversion strategies. Mixed earnings report: EPS beat estimates but declined YoY; revenue missed estimates; significant net income drop due to competitive pressures and operational reorganization. Strong wireless subscriber growth, yet high-interest rates impact equipment sales; 2025 guidance indicates increased capital spending and modest EBITDA and revenue growth.
The company will be buffeted by some strong, oncoming headwinds, one pundit believes.
Keybanc Captial Markets analyst Brandon Nispel downgraded Verizon Communications Inc VZ stock from Overweight to Sector Weight.
We reiterate our Buy rating on Verizon Communications Inc. stock despite mixed Q3 results. Verizon missed some of our key expectations, but wireless growth and broadband additions remained robust, with notable success in fixed wireless. VZ's operating income and adjusted EBITDA are impacted by AI.
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.