Verizon (VZ) trades at $35.78 as investors continue to digest the third-quarter report.
The company reported Earnings per share of $1.32 down 7% from the same quarter last year, but beta the Wall Street expectations of $1.29. The revenue for Q3 rose 4% at $34.2 billion, also above the expectations of $33.80 billion. The company gets almost 85% of adjusted earnings from its wireless business sector.
Verizon said that lost 189,000 wireless phone subscribers after losing 215,000 in Q2. The company reported 8,000 overall postpaid phone net additions. VZ has lost market share in all quarters since Q2 of 2022.
For the full year, the company expects EPS between $5.10 to $5.25 per share matching Wall Street forecasts.
Verizon expects wireless service revenue growth of around 9%. The company also started a new cost-cutting plan that provides savings between $2-3 billion in the next three years.
The company plan to continue its network infrastructure investment, despite the shrinking economy. The guidance is for $22 billion in capital expenditures, including the yearly infrastructure investments and the expenditures in the new spectrum acquired last year. The target is to reach 175 million people by the end of the year with 5G services that provide more speed. The company expects its fixed broadband service to reach 30 million homes by the end of the next year (2023).
Verizon stock is at $35.47 which is a fresh eleven-year low. At the current price, the dividend yield is at 8%. VZ has lost 31% in 2022 and 20% in the last three months amid the turbulence in the markets worldwide. The company’s market capitalization stands at $155.39 billion.
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