Verizon Communications topped subscriber expectations for the latest quarter, but shares were dipping about 1% in Tuesday's premarket trading.
Verizon added more wireless subscribers than expected in the third quarter as the U.S. telecom giant's promotional offers and plans that bundle 5G with streaming services like Netflix helped attract customers.
Verizon reports customer additions, or retail postpaid phone net additions, of 239,000. Wall Street was expecting 221,000.
Verizon Communications Inc. VZ will release earnings results for its third quarter, before the opening bell on Tuesday, Oct. 22,
The company's balance sheet remains leveraged due to 5G CAPEX, but net debt improved, and the 6.2% forward dividend yield is sustainable. Historical seasonality and potential positive market reactions to earnings, alongside Fed interest rate cuts, present bullish catalysts for Verizon's stock. Risks include underperformance against growth stocks driven by the AI revolution and potential reputational damage from service outages.
Chasing 6%-yielders with single-digit price-to-earnings (P/E) ratios can be ultra-risky, especially if you pay less attention to how the business behind the stock is actually faring.
VZ is well-positioned to bridge the digital divide and enhance the connectivity landscape nationwide with steady infrastructure investments.
Verizon is scheduled to report its FY Q3 earnings report on October 22, 2024. In terms of business operations, I will pay close attention to updates on its wireless equipment revenue and upgrade volumes. Another key issue I will tune into is debt management and capital allocation.
Looking beyond Wall Street's top -and-bottom-line estimate forecasts for Verizon (VZ), delve into some of its key metrics to gain a deeper insight into the company's potential performance for the quarter ended September 2024.
Verizon stock's attractive valuation and solid profitability have likely driven its recent outperformance. The Frontier acquisition is expected to enhance Verizon's wireless and broadband market position. Income investors should find VZ's forward dividend yield of more than 6% attractive, as the Fed could cut more through 2025.
In the latest trading session, Verizon Communications (VZ) closed at $43.74, marking a +1.27% move from the previous day.
Verizon (VZ) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.