Benzinga - by Anusuya Lahiri, Benzinga Editor.
Verizon Communications Inc (NYSE:VZ) stock traded higher Monday after it reported fiscal first-quarter 2024 results.
Its sales increased 0.2% year over year to $32.98 billion, marginally missing the consensus of $33.24 billion. Adjusted EPS of $1.15 beat the consensus of $1.12.
Total wireless service revenue was $19.5 billion, up 3.3% Y/Y, driven primarily by pricing actions implemented in recent quarters, higher premium price plan adoption, and growth of its fixed wireless subscriber base. Postpaid phone net losses were 68,000, and retail postpaid net additions were 253,000.
The quarter marked 389,000 total broadband net additions. The company ended the quarter with approximately 11.1 million broadband subscribers.
Total Verizon Business revenues were $7.4 billion, down by 1.6% Y/Y.
Total Verizon Consumer revenue rose by 0.8% Y/Y to $25.1 billion. Consumer wireless retail postpaid churn was 1.03%, and wireless retail postpaid phone churn was 0.83%.
Verizon Consumer clocked wireless retail postpaid phone net losses of 158,000. Verizon Consumer had fixed wireless net additions of 203,000.
The consumer segment EBITDA margin improved by 110 bps 42.6%, attributed to service revenue growth and lower upgrade volumes, while the business segment EBITDA margin declined 130 bps to 20.7%, driven by wireline revenue declines.
Company-level adjusted EBITDA of $12.1 billion, up from $11.9 billion Y/Y.
Verizon Chairman and CEO Hans Vestberg. “We are on track to meet our financial guidance and to deliver positive Consumer postpaid phone net adds for the year.”
FY24 Outlook: Verizon reiterated a 2.0% – 3.5% wireless service revenue growth. It maintained an adjusted EPS of $4.50 – $4.70 versus consensus of $4.58.
Verizon stock gained over 9% in the last 12 months. Investors can gain exposure to the stock via Invesco Dow Jones Industrial Average Dividend ETF (NYSE:DJD) and First Trust Morningstar ETF (NYSE:FDL).
Price action: VZ shares traded higher by 2.17% at $41.37 premarket on the last check Monday.
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