Verizon Stock Fell Because the Company’s Outlook Wasn’t as Good as Expected, and the Industry Is Under Pressure

Verizon Stock

Verizon Stock (NYSE:VZ)

In the premarket trading session on Tuesday, shares of Verizon (NYSE:VZ) dropped about 2% after the telecom giant announced its results for the fourth quarter and offered an estimate for 2023 that was below expectations.

Verizon (NYSE:VZ) said that it anticipates wireless service revenue growth to be between 2.5% and 4.5% in 2023 and expects adjusted profits to be between $4.55 and $4.85 per share, which is much lower than the $4.97 per share that analysts were anticipating.

The prediction for adjusted EBITDA is between $47 billion and $48.5 billion, while the projection for capital investment is between $18.25 billion and $19.25 billion, including the remaining $1.75 billion of the $10 billion for C-band-related spending.

In the fourth quarter, Verizon (NYSE:VZ), headquartered in New York City, reported an adjusted profit of $1.19 per share on operational sales of $35.3 billion. This compares to the consensus expectation of $1.19 per share on revenue of $35.22 billion among market experts. During the time frame in question, Verizon (VZ) acquired 217,000 postpaid customers, surpassing industry experts’ expectations, which were slightly over 209,000.

Verizon stock had its greatest performance in over a decade of business by adding 416,000 net broadband customers to its customer base. During the same period, it also added 59,000 net adds to its Fios internet service.

Verizon said it increased its overall number of broadband users by 1.29 million for the year.

The findings will be discussed at a conference call that the firm will hold at 8:30 in the morning.

UBS, an investment company, said earlier this month that it anticipated Verizon would lose customers again in 2023 but would be “more agile.”

Featured Image: Freepik @ ksandrphoto

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About the author: I'm a financial journalist with more than 3 years of experience. I have worked for different financial companies and covered stocks listed on ASX, NYSE, NASDAQ, etc. I have a degree in marketing from Bahria University Islamabad Campus (BUIC), Pakistan.