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.
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.
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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