Verizon Communications (NYSE:VZ – Get Free Report) posted its earnings results on Monday. The cell phone carrier reported $1.31 EPS for the quarter, beating the consensus estimate of $1.27 by $0.04, FiscalAI reports. Verizon Communications had a return on equity of 19.48% and a net margin of 11.64%. The company had revenue of $34.31 billion for the quarter, compared to the consensus estimate of $34.77 billion.
Verizon Communications Stock Down 0.2%
Shares of NYSE VZ opened at $44.59 on Monday. The company has a current ratio of 0.60, a quick ratio of 0.57 and a debt-to-equity ratio of 1.36. The company has a market cap of $185.24 billion, a price-to-earnings ratio of 11.61, a PEG ratio of 1.70 and a beta of 0.26. Verizon Communications has a 12 month low of $38.54 and a 12 month high of $51.68. The stock has a 50-day moving average price of $47.57 and a two-hundred day moving average price of $46.63.
Verizon Communications Announces Dividend
The firm also recently disclosed a quarterly dividend, which will be paid on Monday, November 2nd. Investors of record on Friday, October 9th will be paid a $0.7075 dividend. The ex-dividend date of this dividend is Friday, October 9th. This represents a $2.83 annualized dividend and a yield of 6.3%. Verizon Communications’s dividend payout ratio (DPR) is 73.70%.
Key Verizon Communications News
Here are the key news stories impacting Verizon Communications this week:
- Positive Sentiment: Verizon reported quarterly adjusted EPS of $1.31, exceeding analysts’ $1.27 estimate. The company also raised its full-year outlook for postpaid phone additions, adjusted EPS and free cash flow, signaling continued operating momentum. Verizon Lifts Outlook, Inks Amazon Deal Worth More Than $2 Billion
- Positive Sentiment: Third-quarter operating revenue rose 1.5% year over year to approximately $34.3 billion, while net income increased 5.2% to $5.3 billion. Verizon added 406,000 postpaid phone customers, 137,000 postpaid accounts and 314,000 broadband customers, including growth in fixed wireless and fiber. Verizon Q3 Revenue Reaches $34.3 Billion as Net Income Rises 5.2%
- Positive Sentiment: Verizon signed an agreement valued at more than $2 billion with Amazon Web Services to provide distributed computing capacity for artificial-intelligence workloads. Operating cash flow reached $11.5 billion and free cash flow totaled $7.8 billion, supporting the company’s dividend and investment plans. Verizon Lifts Outlook, Inks Amazon Deal Worth More Than $2 Billion
- Neutral Sentiment: Investor attention remains focused on the Federal Reserve and interest rates. Higher yields can make Verizon’s income-oriented shares less attractive, while potential rate cuts could improve the appeal of its dividend.
- Negative Sentiment: Revenue of $34.31 billion fell short of the $34.77 billion consensus forecast, tempering the impact of the EPS beat.
- Negative Sentiment: Reports that SpaceX is seeking access to at least 80,000 U.S. cell sites to build a nationwide mobile network raise concerns about future pricing pressure, customer losses and higher competitive spending for Verizon and other carriers. AT&T, Verizon and T-Mobile warn FCC as SpaceX plots a phone network
Analysts Set New Price Targets
Several analysts recently weighed in on VZ shares. Wells Fargo & Company lifted their price target on Verizon Communications from $43.00 to $47.00 and gave the stock an “equal weight” rating in a report on Monday, July 27th. Weiss Ratings reiterated a “buy (b)” rating on shares of Verizon Communications in a research report on Wednesday, August 26th. Scotiabank dropped their target price on Verizon Communications from $51.50 to $50.00 and set a “sector outperform” rating for the company in a report on Friday, October 9th. TD Cowen lifted their target price on Verizon Communications from $54.00 to $56.00 and gave the stock a “buy” rating in a report on Monday, July 27th. Finally, Barclays upped their price target on shares of Verizon Communications from $45.00 to $46.00 and gave the company an “equal weight” rating in a research note on Monday, July 27th. Eight research analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, Verizon Communications currently has an average rating of “Hold” and an average target price of $50.80.
Get Our Latest Stock Report on Verizon Communications
Insider Transactions at Verizon Communications
In related news, CEO Kyle Malady sold 1,100 shares of the stock in a transaction that occurred on Tuesday, October 20th. The shares were sold at an average price of $44.48, for a total value of $48,928.00. Following the completion of the transaction, the chief executive officer owned 99,966 shares of the company’s stock, valued at $4,446,487.68. This represents a 1.09% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 9,900 shares of company stock worth $469,073. 0.03% of the stock is owned by corporate insiders.
About Verizon Communications
Verizon Communications Inc is a telecommunications company that provides wireless communications, broadband, and digital connectivity services. Through its consumer business, Verizon offers mobile voice and data plans, smartphones and other connected devices, home internet, fixed wireless access, and fiber-optic broadband services under the Fios brand.
Verizon also serves businesses, government agencies, and other organizations with wireless connectivity, private networks, internet and data services, managed communications, cloud and security solutions, and Internet of Things services.
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