Verizon Communications on Monday reported first-quarter earnings that fell from a year earlier but topped Wall Street estimates. Verizon stock initially rose, then reversed down although wireless service revenue came in above expectations.
Reported before the market open, Verizon earnings for the quarter ended March 31 fell 4% to $1.15 on an adjusted basis. Revenue for Verizon stock rose 0.2% to $33 billion.
A year earlier, the Dow Jones wireless giant earned $1.19 a share on revenue of $32.9 billion. Analysts had projected Verizon earnings of $1.12 a share on revenue of $33.2 billion for the quarter.
Wireless service revenue climbed 3.3% to $19.5 billion versus estimates of $18.67 billion. Although Q1 is usually seasonally weak, Verizon has pushed through price hikes that boosted wireless services revenue.
Verizon Stock: Postpaid Phone Subscribers Beat
Also, Verizon said it lost 68,000 postpaid phone customers, a closely watched financial metric. Analysts had predicted a Q1 loss of 92,000 postpaid phone subscribers — customers that spend the most monthly. In Q1,Verizon lost 158,000 postpaid consumer subscribers but added 90,000 business postpaid subscribers.
In the year-earlier period, Verizon lost 127,000 postpaid phone subscribers.
In Q1, 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 earnings before interest, taxes, depreciation and amortization.
Verizon Stock Technical Ratings
On the stock market today, Verizon stock dipped 1.6% to 39.85 in morning action.
Heading into the Verizon earnings report, the Dow Jones giant had gained over 7% in 2024 after retreating 4% last year.
Verizon stock holds a Relative Strength Rating of 75 out of a possible 99, according to IBD Stock Checkup.
AT&T reports on Wednesday. Shares edged higher early Monday.
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