On Monday, shares of telecom giant Verizon (VZ) experienced significant growth in trading, boosted by the company’s latest earnings report. As of 2:15 p.m. ET, the stock was up 5%. In comparison, the S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) were climbing at a slower pace, with gains of 0.5% and 0.7%, respectively.
This morning, Verizon revealed its second-quarter figures ahead of the market opening, surpassing analyst predictions with impressive sales and earnings. Furthermore, the corporation boosted its projections for the entire year.
Verizon stock surges on strong Q2 results
In the second quarter, Verizon reported earnings per share (not including GAAP adjustments) as $1.22 on total sales of $34.5 billion. This exceeded predictions made by analysts, who had anticipated earnings of $1.19 on sales of approximately $33.79 billion. The company’s revenue surpassed expectations and increased by 5% compared to the same period last year. Notably, wireless service revenue amounted to $20.9 billion, marking the highest industry figure for that particular quarter.
During this time frame, our equipment earnings grew approximately 25% annually, reaching a total of $6.3 billion. Furthermore, we ended the period with around 12.9 million active broadband connections, marking an increase of about 12% compared to the same period last year.
What’s next for Verizon?
With impressive Q2 performance, Verizon has increased its annual forecast. They now predict that their adjusted earnings per share will experience a yearly growth of 1% to 3%, which is an improvement over the earlier projection of a possible 0% to 3% increase.
In contrast to its current popularity, the stock has dropped by approximately 15.5% over the course of trading this year. The company is currently trading at around 9.2 times this year’s projected earnings and offers a dividend yielding about 6.3%. Although the company appears reasonably priced and pays a substantial dividend, the competitive landscape in the telecom industry could become more challenging due to the emergence of new satellite-based competitors.
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2025-07-21 22:18