Verizon(VZ.US)delivers a surprise in Q4, with mobile and broadband businesses exceeding expectations.

Verizon(VZ.US) reported fourth-quarter financial results that exceeded analyst expectations, with both new mobile and broadband users also exceeding expectations. The company reported fourth-quarter revenue of $35.7 billion, up 1.7% year-on-year, topping expectations of $35.3 billion. Adjusted EPS rose to $1.10, one cent above expectations. Verizon added 568,000 net new phone subscribers, up from 449,000 in the fourth quarter of 2023, and topping the average analyst estimate of 498,000. Broadband was also a highlight. The company added 408,000 net new broadband users in the fourth quarter, nearly double the 227,000 expected by analysts. Fios fiber users increased by 51,000, while fixed wireless business users increased by 373,000. The company is on track to hit the next milestone of 8 million to 9 million fixed wireless access users by 2028. Total broadband connections grew to over 12.3 million at the end of the fourth quarter of 2024, up 15.0% year-on-year. In September, Verizon agreed to acquire Frontier Communications for about $9.59 billion to expand its high-speed internet business. A month later, the two companies agreed to buy spectrum licenses from US Cellular Corp. for $1 billion. The company expects total wireless service revenue growth of 2.0% to 2.8% in 2025; adjusted EBITDA growth of 2.0% to 3.5%; and adjusted EPS growth of 0 to 3.0%.