Verizon Communications (VZ) on Monday reported first-quarter earnings that fell from a year earlier but beat Wall Street estimates. Verizon stock initially rose, then reversed lower even though wireless revenue came in above expectations.
X
Reported before the market open, Verizon's earnings for the quarter ended March 31 fell 4% to $1.15 on an adjusted basis. Verizon stock revenue rose 0.2% to $33 billion.
A year ago, wireless giant Dow Jones earned $1.19 a share on revenue of $32.9 billion. Analysts had expected Verizon to report earnings of $1.12 per share on revenue of $33.2 billion for the quarter.
Wireless revenues rose 3.3% to $19.5 billion versus estimates of $18.67 billion. Although the first quarter is typically seasonally weak, Verizon pushed higher prices that boosted wireless service revenue.
Verizon Stock: Postpaid phone subscribers won
Verizon also said it lost 68,000 postpaid phone customers, a closely watched financial metric. Analysts had expected a first-quarter loss of 92,000 postpaid phone subscribers – the customers who spend the most monthly. In the first quarter, Verizon lost 158,000 consumer postpaid subscribers but added 90,000 business postpaid subscribers.
In the same period a year earlier, Verizon lost 127,000 postpaid phone subscribers.
In the first quarter, earnings before interest, taxes, depreciation and amortization, known as EBITDA, rose 1.4% to $12.1 billion, just below estimates of $12.4 billion.
Also, Verizon added 354,000 5G fixed wireless broadband customers, below estimates of 364,000.
Amid management changes, the telecom giant is focusing on generating growth in free cash flow and EBITDA.
Verizon Stock Technical Ratings
On the stock market today, Verizon stock fell 1.6% to 39.85 in morning trading.
Heading into Verizon's earnings report, the Dow Jones giant has gained more than 7% in 2024 after falling 4% last year.
Verizon stock carries a relative strength rating of 75 out of a possible 99, according to IBD inventory check.
AT&T (T) Reports on Wednesday. Stocks rose early Monday.
Follow Reinhardt Krause on Twitter @reinhardtk_tech For updates on artificial intelligence, cybersecurity, and cloud computing.
You may also like:
Do you want to trade options? Here are the basics to get you started
IBD Digital: Unlock IBD's featured stock listings, tools and analysis today
Learn how to time the market with IBD's ETF market strategy
Keep an eye on IBD's “Breakout of the Day” list of companies that have achieved new buy points
Futures rise as AI stocks rebound; Tesla declines due to recent price cuts
“Extreme travel lover. Bacon fanatic. Troublemaker. Introvert. Passionate music fanatic.”
More Stories
The popular mall retailer is closing all stores nationwide
Fed balance sheet QT: -$1.60 trillion from peak, to $7.36 trillion, lowest since December 2020
Apple's revenue fell less than expected despite a difficult start to the year