Verizon’s Q3 Earnings Fall Short: A Mixed Bag
The telecommunications giant’s latest earnings report has left investors underwhelmed. Verizon’s third-quarter revenue and net income failed to meet analysts’ expectations, despite a narrow beat on adjusted profits.
Revenue Plateaus
Verizon reported $33.33 billion in revenue, roughly flat year-over-year and slightly below consensus estimates. This lackluster performance was attributed to various one-time charges, including acquisition costs and severance expenses.
Profit Takes a Hit
Net income declined 30% to $3.41 billion, or 78 cents per share, falling more than $1 billion short of expectations. However, excluding special items, Verizon’s adjusted earnings per share (EPS) came in at $1.19, a penny above estimates.
Restructuring Efforts
The company’s recent buyout program is expected to result in the loss of approximately 4,800 employees by March 2025, accounting for $1.7 billion of the $2.3 billion in one-time charges. CEO Hans Vestberg remains optimistic, stating that recent announcements have set Verizon up for “disciplined growth, now and into the future.”
Guidance Affirmed
Despite the disappointing Q3 results, Verizon affirmed its full-year adjusted EPS guidance of $4.50 to $4.70. This move suggests that the company remains confident in its ability to deliver long-term growth.
Market Reaction
Verizon shares fell almost 4% to $42.06 in pre-market trading, reflecting investor concerns over the company’s short-term performance. As the telecommunications landscape continues to evolve, Verizon must navigate the challenges ahead to regain investor confidence.
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