Important points
Verizon stock fell Tuesday morning after the company’s third-quarter revenue and net income fell short of analysts’ expectations. Adjusted earnings, which factor in more than $2 billion in one-time charges, narrowly beat expectations. The telecommunications giant also confirmed its full-year outlook.
Verizon (VZ) on Tuesday morning reported third-quarter earnings that fell short of analysts’ expectations, even as the company continued to add wireless phone and Internet subscribers.
The telecommunications giant reported revenue of $33.33 billion, about the same as last year and slightly below analyst consensus estimates compiled by Visible Alpha. Earnings were significantly lower, down 30% to $3.41 billion, or 78 cents a share, more than $1 billion less than expected.
Verizon said its lackluster profits were due to more than $2.3 billion in one-time costs such as acquisitions and severance. Excluding special items, Verizon’s adjusted earnings per share (EPS) came in at $1.19, slightly better than expected.
The company announced last month that it expects to lose about 4,800 employees by March 2025 through its acquisition program, which accounted for $1.7 billion of the $2.3 billion in one-time charges in its third-quarter report.
CEO says Verizon aims for ‘disciplined growth’
CEO Hans Vestberg said the company’s recent announcements, including its $20 billion acquisition of Frontier Communications (FYBR) and its $3.3 billion deal to lease thousands of towers, are a “disciplined move for today and the future.” “We’ve set Verizon up for growth.”
Verizon also confirmed its full-year adjusted EPS guidance of $4.50 to $4.70.
Verzon stock was down about 4% at $42.06 about 30 minutes before the opening bell on Tuesday.
