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Verizon Communications: A Strong Q4 Performance
Verizon Communications, a Dow Jones telecom giant, has reported impressive fourth-quarter adjusted earnings and revenue, exceeding Wall Street targets. The company expects a 2.4% growth in wireless service revenue in 2025, with adjusted EPS growth of 1.5% at the midpoint of guidance.
Revenue and Earnings Beat Expectations
For the period ended December 31, Verizon’s earnings came in at $1.10 per share on an adjusted basis, up two cents from a year earlier. Revenue rose 1.6% to $35.7 billion, surpassing analysts’ predictions of $35.3 billion. Wireless service revenue climbed 3.1% to $20 billion, in line with estimates.
Strong Subscriber Growth
Verizon added 568,000 wireless postpaid phone business and consumer subscribers, exceeding estimates of 350,000. The company also added 373,000 fixed wireless broadband customers in Q4. Postpaid phone subscribers are the highest-spending wireless subscribers, billed monthly.
Stock Market Reaction
Verizon stock rose 1.4% to 39.73 in morning trading, following the earnings report. The company’s guidance for 2025 was generally in line with expectations, although slightly weak on implied EBITDA margins and EPS.
Acquisition Plans
In September, Verizon announced plans to acquire Frontier Communications for $20 billion in cash. The deal is expected to close in approximately 18 months. Frontier is the largest pure-play fiber provider in the U.S., with 10 million home passings expected by the end of 2026.
What’s Next?
AT&T is set to report earnings on Monday. As the telecom industry continues to evolve, investors will be watching closely for signs of growth and innovation. Stay ahead of the curve with the latest market updates and expert analysis.
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