Verizon earnings show wireless subscriber momentum, helping send stock higher

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Shares of Verizon Communications Inc. were up 3% in premarket trading Tuesday after the telecommunications company showed momentum in its consumer wireless business in the latest quarter.

The wireless giant posted a fourth-quarter net loss of $2.6 billion, or 64 cents a share, compared with $6.7 billion, or $1.56 a share, in the year-earlier quarter.

previously disclosed that it would take a $5.8 billion noncash goodwill impairment charge for the fourth quarter following a five-year planning review that resulted in lower projections for the company’s business wireline business than Verizon had previously.

On an adjusted basis, Verizon earned $1.08 a share, matching what analysts tracked by FactSet had been modeling.

Revenue came in at $35.1 billion, slightly below the $35.3 billion that the company reported a year prior. The FactSet consensus was for $34.6 billion.

The company had 318,000 consumer wireless retail postpaid phone net additions during the fourth quarter. That compares with 41,000 for the same period a year before. While FactSet doesn’t track the metric, Verizon seemed to come in sizably ahead of what some analysts were expecting: TD Cowen analyst Gregory Williams, for instance, was modeling 110,000 postpaid phone net additions within the consumer business for the quarter.

Quarterly gross consumer postpaid phone additions rose 16.9% from a year before, marking the best performance in four years, according to the company.

Looking to the full year, Verizon models 2% to 2.5% total wireless service revenue growth for 2024. The company also expects that adjusted earnings before interest, taxes, depreciation and amortization will rise by 1% to 3%.

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