Verizon Stock Surges on Strong Q4 Results and Network Expansion

Verizon Communications Inc. (NYSE: VZ) stock is climbing today after the company reported solid fourth-quarter earnings and announced plans to expand its 5G network. The telecom giant's share price was up 1.3% as of 12:15 p.m. ET and had been up as much as 3.9% earlier in the daily session. Verizon's revenue climbed 1.7% year over year in the fourth quarter, powered by strong mobile wireless and internet-service customer-addition numbers. In the mobile wireless category, the company added 568,000 net postpaid phone additions in the quarter, representing an acceleration from the 449,000 net adds it posted in the prior-year quarter. Revenue for the segment increased 3.1% year over year to reach $20 billion, marking its 18th consecutive quarter of sequential growth.



On the internet side of things, Verizon reported 408,000 net broadband service additions and 373,000 additions for fixed wireless. Meanwhile, Fios net additions came in at 51,000, down from 55,000 in the Q4 2023. The company closed out last year with 12.3 million total broadband service connections, up 15% year over year.

Verizon's early access to the remainder of the C-band spectrum allowed it to deploy more 5G Ultra Wideband service, making it available to even more Americans and opening up more availability of its home and business broadband solutions. This expansion is expected to continue, driving further revenue growth.



With its Q4 report today, Verizon also announced that it closed out the period with total unsecured debt of $117.9 billion, representing an $8.5 billion decline from where it stood in the previous quarter. The company has continued to post solid results and make progress paying down its debt. On the other hand, the telecom space continues to be highly competitive -- and new entrants are entering key markets for Verizon.

To its credit, Verizon isn't standing still. It's aiming to shore up its competitive positioning and open up some new growth channels through its acquisition of Frontier Communications -- which is expected to close in the first quarter of next year. The extent to which the $20 billion deal winds up being successful will have a significant impact on Verizon stock over the next five years.

The company is also looking to artificial intelligence (AI) as a key growth driver, and it's possible that partnerships with Nvidia, Alphabet, and Meta Platforms could wind up yielding some significant performance catalysts. Verizon's debt reduction strategy has a significant impact on its long-term financial health and investment potential. As of the fourth quarter of 2024, Verizon reported total unsecured debt of $117.9 billion, representing an $8.5 billion decline from the previous quarter. This reduction in debt is a positive sign for the company's financial health, as it indicates that Verizon is effectively managing its balance sheet and reducing its financial leverage.

The reduction in debt also has implications for Verizon's investment potential. With less debt on its balance sheet, Verizon has more flexibility to invest in growth opportunities, such as expanding its 5G network, acquiring Frontier Communications, and exploring partnerships with companies like Nvidia, Alphabet, and Meta Platforms. These investments can help Verizon stay competitive in the telecom industry and drive long-term growth.

Additionally, Verizon's debt reduction strategy can improve its creditworthiness and access to capital markets. A lower debt-to-equity ratio can make Verizon more attractive to investors and lenders, potentially leading to lower borrowing costs and better access to financing options. This can further enhance Verizon's financial flexibility and investment potential.

In conclusion, Verizon's strong Q4 results and plans to expand its 5G network have driven the company's stock price higher today. The company's debt reduction strategy also has a positive impact on its long-term financial health and investment potential. With its acquisition of Frontier Communications and potential AI partnerships, Verizon is positioning itself to stay competitive in the telecom industry and drive long-term growth.