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
-
Seven Ways to Reduce Taxes on Social Security Benefits in 2025Social Security Minimizing taxes on Social Security is an essential consideration for many retirees.
-
Sherwin-Williams Is a Sleeper of the 100,000% Return ClubSherwin-Williams has quietly carved out a massive return for shareholders over the years.
-
Sherwin-Williams Is a Sleeper of the 100,000% Return Club
Sherwin-Williams has quietly carved out a massive return for shareholders over the years.
-
Want an Encore Career in Retirement? Consider These Seven StepsBurnout, a need for a change and/or a desire to stay engaged often propel people to start a new professional chapter. This is how you can do it.
-
How Federal Retirees Can Make SSFA Repeals Work for ThemFrom higher Social Security benefits to increased spousal and survivor benefits, federal employees have much to gain from the Social Security Fairness Act.
-
M&A Is Why UnitedHealth Group Stock Is in of the 100,000% Return ClubUnitedHealth has given a master class in mergers and acquisitions over the years.
-
How to Invest in the Nuclear RevolutionAccording to Energy Secretary Chris Wright, "The long-awaited American nuclear renaissance must launch during President Trump's administration."
-
How to Avoid These Five Costly Tax Mistakes That Many Retirees MakeMaking incorrect assumptions about tax brackets, tax-loss harvesting, charitable giving, estate taxes and more can cost you big-time in retirement.
-
Are You a Baby Boomer With $500,000 or Less Saved for Retirement?Here are seven ideas Baby Boomers can consider to help make the most of their financial resources for retirement.
-
Social Security Fairness Act Adds to Pressure on Safety NetWhile the law seeks to level the playing field for many federal employees, the sustainability of the Social Security system is now facing even more challenges.
