Verizon’s Third Quarter Revenue Falls Short as Device Upgrades Slow

Verizon Communications (NYSE: VZ) reported mixed third-quarter results Tuesday, with revenue missing analyst expectations due to declining wireless equipment sales, despite showing growth in its mobility customer base. The telecommunications giant’s stock fell nearly 4% in pre-market trading as investors digested the impact of a $1.7 billion severance charge that weighed on quarterly profits.

Verizon Fails to Meet Revenue Expectations in Third Quarter, Stock Dips in Premarket

The New York-based carrier reported total revenue of $33.3 billion for the quarter, alongside net income of $3.4 billion. Despite the revenue shortfall, driven primarily by fewer device upgrades, Verizon maintained its industry leadership position and reaffirmed its annual guidance.

Verizon shares dropped $1.72 to $41.98 in pre-market trading, following a previous regular session decline of 0.66%. Despite recent pressure, the stock has demonstrated strong performance in 2024, posting a year-to-date return of 23.64%, outpacing the S&P 500’s 22.73% gain.

The company’s one-year return of 47.65% also exceeded the broader market’s 38.58% advance, though its longer-term performance has lagged, with negative returns over three- and five-year periods.

Join our Telegram group and never miss a breaking story.

Wall Street Maintains Positive Outlook on Verizon

Wall Street maintains a generally positive outlook on Verizon, with both Raymond James and Oppenheimer rating the stock as “Outperform,” while RBC Capital takes a more neutral “Sector Perform” stance. Analyst price targets range from $37.00 to $56.00, reflecting diverse views on the company’s growth prospects.

Trading at a forward price-to-earnings ratio of 9.28 and trailing P/E of 16.43, Verizon offers earnings per share of $2.66. The company’s trailing twelve-month revenue stands at $134.24 billion, highlighting its significant presence in the telecommunications sector despite recent challenges in equipment sales.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.