Verizon Communications (VZ) on Tuesday reported third-quarter earnings that fell from a year earlier but beat Wall Street estimates. VZ shares stood out as revenue met expectations while free cash flow growth easily beat views.
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Announced before the market open, Verizon’s earnings for the quarter ending September 30 fell 7% to $1.22 on an adjusted basis. Verizon stock revenue fell 2.6% to $33.3 billion.
A year earlier, Verizon earned $1.32 per share on revenue of $34.2 billion. Analysts had expected Verizon to report earnings of $1.18 per share on revenue of $33.3 billion for the quarter.
Wireless services revenue rose 2.9% to $19.3 billion versus estimates of $19.2 billion.
Growth of Verizon Wireless
Verizon also said it added 100,000 postpaid phone customers versus an increase of 8,000 in the same period a year earlier. Verizon’s subscriber numbers include both consumer and business customers.
Analysts had expected a third-quarter gain of 63,000 postpaid phone subscribers – customers who spend more each month.
In the third quarter, free cash flow jumped 28% to $6.7 billion, beating expectations of $5.2 billion. Verizon raised its full-year free cash flow forecast to $18 billion, an increase of $1 billion from previous guidance.
VZ stock
On the stock market today, VZ stock rose 8% to 33.88 in morning trading.
As Verizon’s earnings report approaches, the Dow Jones giant is down 20% in 2023.
Verizon stock carries a relative strength rating of 37 out of a possible 99, according to IBD inventory check.
Follow Reinhart Krauss on X, formerly known as Twitter, @reinhardtk_tech For updates on 5G wireless networks, artificial intelligence, cybersecurity, and cloud computing.
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