• Sat. Dec 9th, 2023

Why Verizon (VZ) Shares Are Trading Lower Today

ByAnusuya Lahiri

Jul 22, 2022
Why Verizon (VZ) Shares Are Trading Lower Today

  • Verizon Communications Inc VZ reported a flat second-quarter FY22 sales growth year-on-year to $33.79 billion, beating the consensus of $33.77 billion. Adjusted EPS of $1.31 missed the consensus of $1.32.
  • Total wireless service revenue was $18.4 billion, up 9.1% Y/Y, reflecting the company’s ownership of TracFone, further progress on its premium Unlimited strategy, and substantial Business volumes. Service and other revenue were down 3.9% due to revenues lost from Verizon Media Group.
  • The quarter marked 268,000 total broadband net additions.
  • Total Verizon Business revenues were $7.6 billion, down 1.8% Y/Y. Total Verizon Consumer revenue grew 9.1% Y/Y to $25.6 billion. Consumer wireless service revenues rose 10.5% Y/Y. 
  • Consumer wireless retail postpaid churn was 0.93%, and wireless retail postpaid phone churn was 0.75%. The competitive dynamics drove wireless retail postpaid phone net losses of 215,000 due to a decline in gross additions. Verizon Consumer had fixed wireless net additions of 168,000.
  • The consumer segment EBITDA margin was 40.5% versus 44.3% a year earlier. 
  • The business segment EBITDA margin was 22.9% versus 24.1% a year ago. 
  • Adjusted EBITDA of $11.9 billion was down 2.6% Y/Y.
  • Chairman and CEO Hans Vestberg said, “With our network-as-a-service foundation, our new consumer mobility plans, and recent pricing actions, we are being deliberate in our decisions to improve our profitable growth opportunities today and into the future.”
  • Outlook: Verizon cut the outlook for FY22 revenue growth guidance. It expects FY22 reported wireless service revenue growth of 8.5% – 9.5%, down from the previously guided range of 9% – 10%. 
  • Verizon sees service and other revenue growth of (1)% – 0, down from prior guidance of 0%.
  • Verizon sees FY22 adjusted EPS as $5.10 – $5.25, down from the previously guided range of $5.40 – $5.55.
  • Price action: VZ shares traded lower by 4.53% at $45.50 in premarket on the last check Friday.
  • Photo via Wikimedia Commons

Image and article originally from www.benzinga.com. Read the original article here.