Verizon Communications (VZ) is one the best Dow Jones stocks Friday after the telecommunications giant beat top- and bottom-line expectations for its fourth quarter.
In the three months ending December 31, Verizon said its revenue increased 1.6% year over year to $35.7 billion. Its earnings per share (EPS) rose 1.9% from the year-ago period to $1.10.
Also notable was a 3.1% increase in wireless service revenue to $20 billion, which Verizon says is a result of price hikes and sales perks.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"With innovations powered by the best network in the country, we are bringing the best experiences to our customers, in life and work," said Verizon CEO Hans Vestberg in a statement. "It's only going to get better this year and beyond, as we have continued to strengthen Verizon with the pending Frontier acquisition, new satellite partnerships, and ongoing AI [artificial intelligence] enablement, which we expect will enhance and broaden our network for everybody we serve."
Verizon's top- and bottom-line results beat analysts' expectations. Wall Street was anticipating revenue of $35.3 billion and earnings of $1.09 per share, according to MSN.
For its new fiscal year, Verizon said it expects to achieve earnings growth of flat to 3%, implying a range of $4.59 to $4.73. The midpoint of this range, $4.66, came in below analysts' expectations for earnings of $4.72 per share.
Is Verizon stock a buy, sell or hold?
Verizon Communications has lagged the broader market over the past 12 months, roughly flat on a total return basis (price change plus dividends) vs the S&P 500's 27.5% gain. But Wall Street remains bullish on the blue chip stock.
According to S&P Global Market Intelligence, the average analyst target price for VZ stock is $47.16, representing implied upside of nearly 20% to current levels. Meanwhile, the consensus recommendation is aBuy.
Financial services firm Argus Research is one of those outfits with a Buy rating on VZ stock, along with a $42 price target.
"Verizon stresses that it looks for profitable growth from high value subscribers and its recent price increases bear that out. Management has improved wireless service revenue growth, adjusted EBITDA [earnings before interest, taxes, depreciation and amortization] expansion, and free cash flow in recent quarters," wrote Argus analyst Joseph Bonner.
He added that the company "continues to benefit from strong customer loyalty and service plan upgrades."
Related Content
-
Kohl’s to Close 27 Stores in March 2025 — Is Your Location on the List?Kohl’s is closing 27 stores this Saturday as part of its 2025 restructuring plan. Find out which locations are affected and why they’re closing.
-
Stock Market Today: It's Going to Stay Choppy for StocksAuto-focus can show us a lot about uncertainty on the ground and in the stock market.
-
Stock Market Today: It's Going to Stay Choppy for StocksAuto-focus can show us a lot about uncertainty on the ground and in the stock market.
-
Revocable Living Trusts: The Good, the Bad and the UglyPeople are conditioned to believe they should avoid probate at all costs, but when compared with living trusts, probate could be a smart choice for some folks.
-
How to Plan for Retirement When Your Child Has Special NeedsWhen your child has special needs, your retirement plan should include a plan for when you'll no longer be able to care for them yourself. A five-step guide.
-
Stock Market Today: Auto Tariffs Send Stocks LowerThe main indexes snapped their win streaks after the White House confirmed President Trump will talk about auto tariffs after the close.
-
Tax Advantages of Oil and Gas Investments: What You Need to KnowTax incentives allow for deductions and potential tax-free earnings — benefits accessible only to accredited investors in small producer projects.
-
Charitable Contributions: Five Frequently Asked QuestionsMake the most of your good intentions by understanding the ins and outs of charitable giving. A good starting point is knowing what's deductible and what isn't.
-
Financial Leverage, Part Two: Don't Say We Didn't Warn YouA lesson in how highly leveraged investments can benefit the first movers and crush the next round of buyers.
-
Taxes in Retirement: What ESOP Participants Need to KnowMost Employee Stock Ownership Plans (ESOP) participants transfer company stock to an IRA starting around age 55, so taxes on that money have been deferred.
