Verizon Reports Strong Q3 Results

Verizon Communications Inc. has revised its free-cash-flow expectations upwards for the year, indicating robust performance ahead. As a result, the telecommunications company’s shares are anticipated to rise by about 2% in Tuesday’s premarket trading.

Financial Highlights

Verizon reported a net income of $4.9 billion, or $1.13 per share, compared to $5.0 billion, or $1.17 per share, during the same period last year. After adjusting for certain factors, Verizon’s earnings stood at $1.22 per share, surpassing the FactSet consensus of $1.18 per share.

Additionally, the company’s revenue decreased slightly from $34.2 billion to $33.3 billion, aligning with the FactSet consensus. The consumer business contributed $25.3 billion in revenue, while the business unit accounted for $7.5 billion.

Positive Factors Driving Performance

Verizon’s decision to simplify its plans in May has resonated well with customers. By offering a range of customizable add-on services, Verizon has provided more flexibility and choice to consumers. Additionally, the company witnessed an early influx of iPhone 15 availability towards the end of the quarter, contributing to positive growth.

Revised Projections

Encouraged by their solid performance, Verizon now expects to generate over $18 billion in free cash flow for the full year, surpassing their initial target by $1 billion. This increase is particularly significant as free cash flow is a key metric for Verizon investors due to the company’s dividend obligations.

Furthermore, the company anticipates that capital spending will fall within the higher range of their previously guided estimate, which was set at $18.25 billion to $19.25 billion.