Verizon's Q2 Revenue and Profit Exceed Expectations, Boosting Full-Year Outlook and Share Price

Verizon Communications Inc. (VZ) shares rose 4.6% in premarket trading after the company revised its full-year profit forecast upward. The wireless service sector saw robust growth, leading to an anticipated adjusted EPS growth of 1% to 3%. Analysts' average price target of $47.81 suggests a potential 14.36% upside, while GuruFocus estimates a slight downside based on GF Value estimation.

Verizon Communications Inc. (VZ) shares surged 4.6% in premarket trading following the company's upward revision of its full-year profit forecast. The telecom giant reported strong second-quarter earnings, which drove the positive outlook.

Verizon now expects annual adjusted earnings per share (EPS) growth between 1% and 3%, an upward revision from the previous range of 0% to 3%. The company also projected adjusted EBITDA growth between 2.5% and 3.5%, up from the earlier 2% to 3.5% forecast [1].

In the second quarter, Verizon's adjusted EBITDA increased 4.1% year-over-year to $12.8 billion, surpassing the Bloomberg consensus estimate of $12.67 billion. Total operating revenue for the group rose 5.2% annually to $34.5 billion, outpacing the prior forecast of $33.76 billion [1].

Wireless service revenue climbed 2.2% to $20.9 billion, supported by more customers opting for plans with added benefits such as streaming platform access. To retain customers amid stiff competition, Verizon has launched targeted promotions. The company had reported weaker subscriber growth in the first quarter, intensifying concerns over the battle for a limited number of new users. Between April and June, monthly wireless bill-paying subscribers declined by 9,000, missing expectations of 13,000 additions [1].

Broadband net additions reached 293,000, reflecting Verizon’s strategic push into internet services. Earlier this year, Verizon secured regulatory approval to acquire fiber-optic internet provider Frontier for $20 billion, aiming to expand its network assets to meet growing customer data demand [1].

CEO Hans Vestberg commented, "Verizon has momentum and a clear path forward." The company's strong second-quarter financial performance and customer growth reflect its diverse wireless and broadband portfolio, tailored to all market segments. Verizon also made key moves to attract and retain customers in the second quarter with its 3-year price lock and free phone guarantee, and the industry-leading launch of AI-powered innovations for personalized customer service and an enhanced customer experience [2].

Verizon's stock price has seen a positive reaction to the revised earnings forecast, with analysts' average price target of $47.81 suggesting a potential 14.36% upside. GuruFocus estimates a slight downside based on GF Value estimation [3].

References:
[1] https://ih.advfn.com/market-news/article/13089/verizon-tightens-full-year-forecast-surpasses-q2-earnings-expectations
[2] https://www.verizon.com/about/news/verizon-raises-financial-guidance-adjusted-ebitda-adjusted-eps-and-free-cash-flow
[3] https://www.gurufocus.com/stock/VZ