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Verizon Posts Strong Q3 Earnings, Stock Up

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On Wednesday, Oct. 21, Verizon stock rose 1.1 percent in the pre-market trading session after the company released its third-quarter earnings results. Verizon's earnings beat analysts’ consensus estimate, while its revenue missed the forecast.

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When did Verizon report its earnings?

Verizon reported its third-quarter results on Oct. 21 before the markets opened. The wireless service provider will hold its earnings conference call at 8:30 a.m. ET. Investors and media can access the webcast and presentation materials on the company’s investor relations website.

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Source: Getty
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Highlights from Verizon’s Q3 earnings report

In the third quarter, Verizon reported an adjusted EPS of $1.25, which was in-line with the third quarter of 2019. The adjusted EPS beat analysts’ average estimate of $1.22. Verizon generated sales of $31.5 billion in the third quarter, which was 4.1 percent lower than the third quarter of 2019. The company missed analysts’ average sales estimate of $31.6 billion.

In the third quarter, Verizon reported a wireless retail postpaid phone churn rate of 0.63 percent compared to 0.79 percent in the third quarter of 2019. The company added 142,000 postpaid phone net customers in the third quarter.

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Verizon’s stock price is rising after Q3 results

Verizon stock was up about 0.8 percent at $57.69 in the pre-market trading session on Oct. 21 as of 7:52 a.m. ET. The stock fell 0.1 percent on Oct. 20 and closed at $57.25 with a market capitalization of $236.9 billion.

Verizon stock has fallen by 3.6 percent in the last five days and 5.8 percent in the last year. The stock is trading 8 percent below its 52-week high of $62.22 and 17.2 percent above its 52-week low of $48.84.

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What is Verizon’s dividend yield?

As of Oct. 20, Verizon’s dividend yield was 4.38 percent. Currently, the company pays an annual dividend of $2.51 per share. In the first nine months of 2020, Verizon distributed $7.6 billion in cash dividends to shareholders compared to $7.5 billion in the same period a year ago.

What is Verizon’s stock forecast?

Analysts' stock price forecast for Verizon is $61.26, which suggests a 7 percent upside. The highest target price of $70 implies a 22.3 percent upside, while the lowest target price of $54 suggests a 5.7 percent downside. Among the 32 Wall Street analysts tracking Verizon, eight recommend a buy and 24 recommend a hold. None of the analysts recommend a sell.

Income-oriented investors could consider a position in Verizon stock. Verizon’s 4.4 percent dividend yield is more than double the S&P 500’s average yield of about 1.8 percent. The stock might be appealing to growth investors if 5G wireless services reignite sales and earnings growth.

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