Verizon Stock Rises as Telecom Giant Beats Earnings and Raises Guidance

Key Stats for Verizon Stock

• Price change for Verizon stock: 1%
• $VZ Share Price as of Apr. 27: $47
• 52-Week High: $52
• $VZ Stock Price Target: $52

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What Happened?

Verizon (VZ) stock climbed after the company posted a solid Q1 beat and raised its full-year earnings guidance.

• Adjusted EPS came in at $1.28, up 7.6% year-over-year and ahead of the $1.22 consensus estimate.
• Revenue reached $34.44 billion, growing 2.9%, though it came in slightly below expectations.

The headline numbers were good, but what really caught attention was the operational turnaround story underneath them.

• Verizon posted positive postpaid phone net adds in Q1 for the first time since 2013. The company added 55,000 net subscribers in the quarter, a swing of more than 340,000 compared to the same period last year.
• Churn also improved meaningfully. Consumer postpaid phone churn dropped to 90 basis points for the quarter and fell below 85 basis points by March.
• That’s a big deal for a telecom. Lower churn means customers are staying longer, which compounds into stronger revenue and cash flow over time.
• Broadband is another bright spot. Verizon added 341,000 broadband subscribers in the quarter, including 214,000 fixed wireless and 127,000 fiber net adds. Total broadband subscribers now stand at roughly 16.8 million.

The Frontier acquisition, which closed in January, is also on track, with management expecting over $1 billion in annual cost synergies by 2028.

Adjusted EBITDA hit a record $13.4 billion, up 6.7%. Free cash flow was $3.8 billion. The company also bought back $2.5 billion in shares during the quarter, its first buyback program in over a decade.

On guidance, Verizon raised its full-year adjusted EPS outlook to 5%-6%, up from the prior range of 4%-5%. Postpaid phone net adds are now expected to land in the upper half of the 750,000-1 million range.

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What the Market Is Telling Us About Verizon Stock

This was a clean quarter for Verizon stock. Record customer satisfaction, Record EBITDA, improved churn, first positive Q1 net adds in 13 years, and a guidance raise all in one report is a strong combination.

CEO Dan Schulman, who joined roughly a year ago, is clearly making progress on his turnaround agenda.

Verizon stock still offers a dividend yield above 6%, making it attractive to income investors.

With churn improving and buybacks underway, Verizon stock looks well-supported at current levels.

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Disclaimer:

Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!