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Key Takeaways
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Verizon shares fell Tuesday morning after the company’s third-quarter revenue and net income came in below analysts’ expectations.
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Adjusted profits narrowly beat estimates after accounting for over $2 billion in one-time costs.
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The telecommunications giant also affirmed its full-year outlook.
Verizon (VZ) reported third-quarter results below analysts’ expectations Tuesday morning, despite continuing to add wireless phone and internet subscribers.
The telecommunications giant reported $33.33 billion in revenue, roughly flat year-over-year and slightly below analysts’ consensus estimates compiled by Visible Alpha. Profit fell well short, declining 30% to $3.41 billion, or 78 cents per share, more than $1 billion short of expectations.
Verizon said its lackluster profit numbers were because of more than $2.3 billion in one-time charges for acquisitions, severance costs, and other charges. Excluding special items, Verizon’s adjusted earnings per share (EPS) came in a penny above estimates at $1.19.
The company said last month it expects to lose about 4,800 employees through a buyout program by March 2025, which accounted for $1.7 billion of the $2.3 billion in one-time charges in the Q3 report.
CEO Says Verizon Set Up for ‘Disciplined Growth’
CEO Hans Vestberg said the company’s recent announcements like the $20 billion acquisition of Frontier Communications (FYBR) and a $3.3 billion deal to lease thousands of communications towers “have set Verizon up for disciplined growth, now and into the future.”
Verizon also affirmed its full-year adjusted EPS guidance of $4.50 to $4.70.
Verzon shares were down almost 4% at $42.06 about 30 minutes before the opening bell Tuesday.
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