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VZ stock: Verizon earnings guide misses estimates amid consumer wireless struggles


Verizon Communications (VZ) on Tuesday reported fourth-quarter adjusted earnings that met estimates while its 2023 earnings outlook missed. VZ shares fell amid expectations that more aggressive wireless promotions will hurt 2023 profits.




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For the December quarter, Verizon earnings were $1.19 a share adjusted, down 10% from a year earlier, excluding items. Revenue rose 3.5% to $35.3 billion.

A year earlier, Verizon earned $1.31 a share on revenue of $34.1 billion. Analysts had expected Verizon earnings of $1.19 a share on revenue of $35.1 billion for the quarter.

Furthermore, Verizon said it added 217,000 postpaid wireless phone subscribers, compared with analyst estimates for an increase of 201,000, which includes both consumer and business subscribers. Verizon added 41,000 consumer subscribers in the fourth quarter. During the September quarter, Verizon lost 89,000 consumer lines.

above stock market todayShares of Verizon fell 2.5% to 38.64 in premarket trading. Heading to Verizon’s earnings report, VZ stock is up 1.6 percent in 2023.

VZ Stock: Missed 2023 guidance

For 2023, Verizon said it expects adjusted earnings per share of $4.7 at the guidance average. Verizon did not provide a total revenue outlook. It forecasts wireless services revenue growth of 3.5% versus an estimate of 2.5% growth.

VZ stock analysts polled by FactSet had estimated 2023 earnings at $4.96 per share with revenue up 1.2%.

Verizon forecasts adjusted EBITDA — earnings before interest, taxes, amortization, and amortization — between $47 billion and $48.5 billion, missing estimates. Analysts had forecast adjusted EDITDA growth of 1.5% to $48.7 billion.

Verizon in December rocked its consumer wireless business. Verizon fired Manon Brouillette, who joined the company in June 2021 and was promoted to chief executive officer of its consumer business in January 2022. CEO Hans Vestberg took over Brouillette’s duties. .

competitor AT&T (t) reported fourth-quarter earnings early Wednesday. by AT&T free cash flow outlook will be key, analysts say. AT&T stock lost a small portion.

Verizon Stock retreated 24% last year. VZ stock has a Relative Strength Rating of 29 out of 99, according to Check IBD Stocks.

Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity, and cloud computing.

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