Verizon Communications (VZ) posted better-than-expected fourth quarter revenues Tuesday, while topping forecasts for new wireless subscribers despite last years price hikes, but forecast softer full-year profits amid fading customer demand.
Verizon said adjusted non-GAAP earnings for the three months ending in December were pegged at $1.19 per share, down 9.2% from the same period last year and essentially matching the Street consensus forecast. Group revenues, Verizon said, rose 3.5% from last year to $35.3 billion, just ahead of analysts' estimates of a $35.1 billion tally.
Verzion's bill-paying additions for the quarter were pegged at 217,000, topping the FactSet forecast of around 200,400.
Looking into the 2023 financial year, Verizon forecast adjusted earnings in the region of $4.55 to $4.85 per share and wireless revenue growth of between 8.5% and 9.5%.
"We delivered on the operational expectations and financial targets that we set in the second half of 2022," said CEO Hans Vestberg. “We are rapidly building out our C-Band spectrum with the most aggressive network deployment in our company's history and are well positioned to improve and accelerate our performance."
"Wireless mobility and nationwide broadband will be two of the most significant contributors to our growth for the next several years," he added.
Verizon shares were marked 0.1% lower in Tuesday afternoon trading following the earnings release to change hands at $39.60 each, a move that would extend the stock's six-month decline to around 12%.
AT&T (T), Verizon's smaller rival, will post fourth quarter earnings prior to the start of trading on Wednesday, with analysts looking for adjusted earnings of 57 cents per share on revenues of $41 billion.
Last October, AT&T reiterated its full-year free cash flow forecast of $14 billion, but lifted its mobility revenue growth guidance to the "upper end" of its prior forecast of between 4.5% and 5%.
Full year earnings, A&T said, should rise to $2.50 per share, a 4 cents improvement from the upper end of its summer forecast.
