Verizon Earnings Exceed Expectations; New CEO Vows Major Changes
Verizon Communications has recently reported its third-quarter earnings, exceeding Wall Street expectations despite facing competitive pressures. This comes as the company undergoes a significant leadership transition.
Financial Performance Overview
For the quarter ending on September 30, Verizon reported adjusted earnings of $1.21 per share, surpassing analysts’ predictions of $1.19. Revenue reached $33.8 billion, slightly missing the forecast of $34.26 billion.
Key Earnings Metrics
- Adjusted Earnings: $1.21 per share
- Revenue: $33.8 billion
- Analyst Earnings Estimate: $1.19 per share
- Analyst Revenue Estimate: $34.26 billion
- Year-over-Year Earnings Increase: $0.02
- Growth in Revenue: 1.5%
Subscriber Changes
During the third quarter, Verizon added a total of 44,000 postpaid phone subscribers. However, the consumer division saw a loss of 7,000 subscribers, diverging from estimates that anticipated a gain of 19,000 subscribers. In contrast, the company welcomed 261,000 new wireless 5G broadband customers, bringing the total to 5.4 million.
Competitive Landscape
The competitive environment in the telecom sector remains intense. Major players like AT&T and T-Mobile are increasing their subsidies on mobile devices as they respond to the release of premium models like the iPhone 17. Additionally, there are enhanced trade-in promotions for customers who opt to switch providers.
Leadership Change and Future Outlook
On October 6, Verizon appointed Dan Schulman as its new Chief Executive Officer, succeeding Hans Vestberg. Schulman, previous CEO of PayPal and Virgin Mobile, has committed to transformative changes aimed at improving customer focus and financial sustainability.
Schulman’s Commitment
In his initial statement, Schulman outlined his vision: “We will aggressively transform our culture, our cost structure, and the financial profile of Verizon.” This approach is expected to bolster competitive positioning and shareholder returns.
Stock Market Reaction
Following the earnings announcement, Verizon’s stock price increased by 3.3%, reaching $40.61. Despite this gain, the stock had faced a challenging October and was down 2% prior to the report.
Stock Performance Metrics
- Current Stock Price: $40.61
- Stock Change Post-Earnings: +3.3%
- 2025 Stock Performance: -2% prior to report
- Composite Rating: 25 out of 99
- Accumulation/Distribution Rating: E
As Verizon progresses through this transitional phase, market observers will be keenly watching how Schulman’s leadership impacts the company’s strategic direction and competitive stance in the telecom industry.
