Verizon Communications on Tuesday reported fourth-quarter earnings that fell from a year earlier but met Wall Street estimates. VZ stock rose as wireless subscriber additions topped expectations amid a shake-up in the consumer business.
Reported before the market open, Verizon earnings for the quarter ended Dec. 31 fell 9% to $1.08 on an adjusted basis. Revenue for Verizon stock dipped 0.3% to $35.1 billion.
A year earlier, Verizon earned $1.19 a share on revenue of $35.3 billion. Analysts had projected Verizon earnings of $1.08 a share on revenue of $34.6 billion for the quarter.
Wireless service revenue climbed 3.2% to $19.4 billion versus estimates of $19.37 billion.
VZ Stock: Subscriber Adds Top Views
Also, Verizon said it added 449,000 postpaid phone customers vs. a 217,000 gain in the year-earlier period. Verizon's subscriber figures include both consumer and business customers.
Analysts had predicted a Q4 gain of 239,000 postpaid phone subscribers — customers that spend the most monthly.
Verizon Chief Executive Hans Vestberg commented on consumer trends on the Q4 earnings call with analysts. He noted recent video streaming deals with Netflix and others.
"In mobility, we had 449,000 postpaid phone net adds, driven by improving net adds in consumer and a continued sustainable performance in Verizon business," he said.
Vestberg added: "In consumer, you can see the path of continuous improvements from the start of year. In the fourth quarter, we delivered our best postpaid phone gross adds performance since 2019 and our best net adds in two years. We added 318,000 postpaid consumer phone customers in the fourth quarter, and our gross adds were up almost 17% year- over-year. It is clear that we have momentum in consumer as we move into 2024. We will continue to work to get our fair share of new business."
On the stock market today, VZ stock jumped 6.7% to close at 42.23, marking an 11-month high.
Verizon 2024 Guidance In-Line
Also in Q4, Verizon added 375,000 5G broadband customers.
For 2024, Verizon forecast wireless service revenue growth in a range of 2% to 3.5%. In addition, it projected adjusted EBITDA growth in a range of 1% to 3% and adjusted EPS of $4.50 to $4.70. The EPS guidance was in line.
The Verizon brand also has lost some oomph as the company fights to regain its marketing claim to operating the highest quality wireless network.
Amid management changes, the company is focusing on generating growth in service revenue, free cash flow and earnings before interest, taxes, depreciation and amortization.
Heading into the Verizon earnings report, the Dow Jones giant had gained 5% in 2024 after retreating 4% last year.
Verizon stock holds a Relative Strength Rating of 77 out of a possible 99, according to IBD Stock Checkup.
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