Shares of Verizon Communications Inc. (VZ) dipped in pre-market trading after the company reported mixed results for its second quarter of FY24. The telecommunications company reported adjusted earnings of $1.15 per share in the second quarter, compared to $1.21 in the same period last year. This was in line with analysts’ consensus estimates.
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The company generated Q2 operating revenues of $32.8 billion, an increase of 0.6% year-over-year, but missed analysts’ expectations of $33.04 billion.
VZ’s Wireless Services
Verizon added 148,000 net wireless phone subscribers in the second quarter, exceeding analysts’ estimates of 127,870. This increase was driven by demand for its flexible myPlan, which includes streaming services like Netflix (NFLX) and Disney+ (DIS) at discounted prices. Verizon’s myPlan, which launched in May last year, allows customers to pay only for what they need, helping the company compete with AT&T (T) and T-Mobile (TMUS).
Verizon generated total Q2 wireless services revenues of $19.8 billion, up by 3.5% year-over-year.
Verizon Reiterates FY24 Guidance
Looking forward, management now expects wireless service revenue to grow in the range of 2% to 3.5% and adjusted earnings per share to be between $4.50 and $4.70 per share. For reference, analysts were expecting adjusted EPS of $4.57.
Is Verizon a Buy or Sell Stock?
Analysts remain cautiously optimistic about VZ stock, with a Moderate Buy consensus rating based on seven Buys and Holds each. Over the past year, VZ has increased by more than 30%, and the average VZ price target of $45.68 implies an upside potential of 9.8% from current levels. These analyst ratings are likely to change following Verizon’s Q2 results today.
