Verizon Q3 Earnings: Wi-fi Subs Enhance with 5G Gives, $1.7B Severance Cost Hit To Revenue, Reiterates Annual Outlook – Verizon Communications (NYSE:VZ)

Verizon Communications Inc VZ inventory traded decrease on Tuesday after it reported fiscal third-quarter outcomes. 

Its gross sales progress was flat 12 months over 12 months, reaching $33.33 billion, marginally lacking the analyst consensus estimate of $33.43 billion. Service and different income progress was offset by declines in wi-fi gear income.

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Adjusted EPS of $1.19 beat the analyst consensus estimate of $1.18.

Whole wi-fi service income was $19.8 billion, up 2.7% 12 months over 12 months, pushed by pricing actions and progress from mounted wi-fi connections.

Postpaid cellphone web additions had been 239,000. Verizon’s retail postpaid web additions had been 349,000.

The quarter noticed 389,000 complete broadband web additions. The corporate ended the quarter with 11.9 million broadband subscribers, up 16.0% 12 months over 12 months.

Verizon’s complete mounted wi-fi web additions stood at 363,000 within the quarter, beating Truth Set estimates of 218,100 aided by promotional presents and bundling 5G with streaming companies like Netflix Inc NFLX, CNBC studies.

On the finish of the third quarter of 2024, the corporate had an almost 4.2 million mounted wi-fi subscribers base. The corporate reached its mounted wi-fi subscriber goal 15 months forward of schedule.

Whole Verizon Enterprise revenues had been $7.4 billion, down 2.3% Y/Y. Whole Verizon Shopper income rose by 0.4% Y/Y to $25.4 billion. Shopper wi-fi retail postpaid churn was 1.07%, and wi-fi retail postpaid cellphone churn was 0.84%. 

Verizon Shopper clocked wi-fi retail postpaid cellphone web additions of 81,000, up from 51,000 web losses Y/Y. Verizon Shopper had mounted wi-fi web additions of 209,000.

Verizon’s web revenue declined to $3.4 billion from $4.9 billion a 12 months in the past resulting from $1.7 billion in severance costs ensuing from a voluntary separation program and different headcount discount initiatives.

The buyer phase EBITDA margin improved by 60 bps 43.4%, attributed to service income progress and decrease improve volumes, whereas the enterprise phase EBITDA margin declined 30 bps to 21.8%, pushed by wireline income declines. 

Firm-level adjusted EBITDA of $12.5 billion, up from $12.2 billion Y/Y.

Verizon’s year-to-date free money movement was $14.5 billion, down from $14.6 billion Y/Y.

FY24 Outlook: Verizon reiterated a 2.0%–3.5% wi-fi service income progress. It maintained an adjusted EPS of $4.50 – $4.70 versus consensus of $4.57.

Value motion: VZ inventory is down 3.07% at $42.36 premarket on the final verify on Tuesday.

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Photograph by JHVEPhoto through Shutterstock