Verizon shares rise as earnings rise, wireless service revenue rises

Verizon Communications (VZ) on Monday reported first-quarter profits that fell from a year earlier, but were higher than Wall Street estimates. Verizon shares rose as wireless revenues came in above expectations.

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Verizon’s earnings for the quarter ended March 31 fell 4% to $1.15 on an adjusted basis before the market opened. Verizon stock sales rose 0.2% to $33 billion.

A year earlier, wireless giant Dow Jones earned $1.19 per share on revenue of $32.9 billion. Analysts had forecast Verizon earnings of $1.12 per share on revenue of $33.2 billion for the quarter.

Wireless service revenue rose 3.3% to $19.5 billion, compared to estimates of $18.67 billion. Although the first quarter is typically seasonally weak, Verizon has implemented price increases that have boosted wireless revenue.

Verizon Stock: Beating Postpaid Phone Subscribers

Verizon also says it has lost 68,000 postpaid phone customers, a closely watched financial metric. Analysts had forecast a loss of 92,000 postpaid phone subscribers in the first quarter – customers who spend the most monthly. In the first quarter, Verizon lost 158,000 postpaid consumer subscribers but added 90,000 business postpaid subscribers.

During the year-ago period, Verizon lost 127,000 postpaid phone subscribers.

Amid management changes, the telecom giant is focused on generating growth in free cash flow and earnings before interest, taxes, depreciation and amortization.

In today’s stock market, Verizon shares rose 2.6% to 41.55 million, signaling they’re back above the 50-day line.

Heading into Verizon’s earnings report, the Dow Jones giant was up more than 7% in 2024 after falling 4% last year.

Verizon stock has a relative strength rating of 75 out of a possible 99 IBD inventory check.

AT&T reported this on Wednesday. Stock prices moved higher early Monday.

Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.

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