Copyright Investor's Business Daily
Verizon Communications (VZ) on Wednesday reported third-quarter adjusted earnings that topped Wall Street targets while revenue missed amid its sudden change in chief executives. Verizon stock rose on the news. The telecom firm continued to lose wireless subscriber market share amid intensified competition but added more postpaid phone subscribers overall than expected. Also, Verizon reiterated 2025 guidance and announced a dividend increase. For the period ended Sept. 30, Verizon earnings came in at $1.21 per share on an adjusted basis, excluding one-time items, up two cents from a year earlier. Revenue rose 1.5% to $33.8 billion. Analysts had predicted Verizon earnings of $1.19 per share, with revenue at $34.26 billion, according to FactSet. Verizon Stock: Consumer Business In Q3, Verizon said it added 44,000 wireless postpaid phone subscribers overall, though its consumer business lost 7,000 subscribers, versus estimates for a gain of 19,000 subscribers. Billed monthly, postpaid phone subscribers are the highest spending wireless subscribers. Meanwhile, Verizon said it added 261,000 wireless 5G broadband customers. At the end of September, it had 5.4 million 5G broadband subscribers. Earnings before interest, taxes, depreciation and amortization came in at $11.23 billion, compared to estimates of $12.73 billion. The outlook for Verizon's consumer wireless business has been key for investors. Competition has intensified in 2025 pressuring profit margins, say Wall Street analysts. AT&T (T), Verizon and T-Mobile (TMUS) have increased subsidies on mobile phones amid Apple's (AAPL) roll out of higher priced iPhone 17 models. And, the wireless firms have stepped up phone trade-in promotions that offer consumers buyouts if they terminate contracts. In Q3, T-Mobile added 841,000 postpaid phone subscribers while AT&T added 405,000. Verizon CEO Shakeup In a surprise move, Verizon on Oct. 6 appointed Dan Schulman as chief executive officer. He replaced Hans Vestberg. Schulman has served as the CEO of PayPal Holdings (PYPL) and Virgin Mobile. In a statement, Schulman promised big changes. "We will aggressively transform our culture, our cost structure, and the financial profile of Verizon in order to put our customers first, compete effectively, and deliver sustainable returns for our shareholders," Schulman said. Verizon's deal to acquire Frontier Communications (FYBR) for $20 billion in cash is expected to close in early 2026. Verizon Stock Before the open on the stock market today, shares rose 3.3% to 40.61. Verizon stock had retreated 2% in 2025 heading into the earnings report. VZ stock has tumbled in October, hitting a nine-month low last week. Verizon stock holds a Composite Rating of 25 out of a possible 99, according to IBD Stock Checkup. The score combines five separate proprietary ratings into one rating. The best growth stocks have a Composite Rating of 90 or better. Also, Verizon stock has an Accumulation/Distribution Rating of E. That rating analyzes price and volume changes in a stock over the past 13 weeks of trading. Its current rating indicates more funds are buying than selling. The rating, on a scale of A+ to E, measures institutional buying and selling in a stock. A+ signifies heavy institutional buying, a C grade is neutral. Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing. Fed Meeting To Deliver Rate Cut And A Little Extra Want To Trade Options? Try Out These Strategies Monitor IBD's "Breaking Out Today" List For Companies Hitting New Buy Points IBD Digital: Unlock IBD's Premium Stock Lists, Tools And Analysis Today
