Verizon Communications on Tuesday reported third-quarter earnings that fell from a year earlier but topped Wall Street estimates. VZ stock popped as revenue met expectations while free cash flow growth handily beat views.
Reported before the market open, Verizon earnings for the quarter ended Sept. 30 fell 7% to $1.22 on an adjusted basis. Revenue for Verizon stock dipped 2.6% to $33.3 billion.
A year earlier, Verizon earned $1.32 a share on revenue of $34.2 billion. Analysts had projected Verizon earnings of $1.18 a share on revenue of $33.3 billion for the quarter.
Wireless service revenue climbed 2.9% to $19.3 billion versus estimates of $19.2 billion.
Verizon Wireless Growth
Also, Verizon said it added 100,000 postpaid phone customers versus an 8,000 gain in the year-earlier period. Verizon's subscriber figures include both consumer and business customers.
Analysts had predicted a Q3 gain of 63,000 postpaid phone subscribers — customers that spend the most monthly.
In Q3, free cash flow jumped 28% to 6.7 billion, trouncing expectations of $5.2 billion. Verizon hiked its full-year free cash flow outlook to $18 billion, an increase of $1 billion over earlier guidance.
VZ Stock
On the stock market today, VZ stock popped 9.3% to close at 34.30.
Also in Q3, Verizon added 384,000 5G broadband customers, topping estimates of 375,000.
Heading into the Verizon earnings report, the Dow Jones giant had retreated 20% in 2023.
Verizon stock holds a Relative Strength Rating of 37 out of a possible 99, according to IBD Stock Checkup.
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