Verizon Communications Inc. Shares surges 2.5% After Earnings Report

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Verizon Communications Inc. Shares surges 2.5% After Earnings Report

Current Price: $40.31
+2.52%
on October 29, 2025

Verizon Communications, Inc., founded in 1983 and headquartered in New York, NY, is a leading holding company that specializes in communications, information, and entertainment services. It operates through two main segments: Consumer, which focuses on wireless and wireline services for individuals, and Business, which provides a wide range of communication solutions, including broadband, data, and IoT services for enterprises.

📰 Recent Developments

Verizon Communications Inc. reported robust third-quarter financial results, with wireless service revenue increasing 2.9% year-over-year to $20.1 billion, driven by higher average revenue per account and postpaid phone net additions of 68,000. Broadband revenue rose 4.3% to $2.8 billion, reflecting fixed wireless access growth exceeding 400,000 subscribers.

The company launched an updated 5G Ultra Wideband network enhancement in select urban markets, improving speeds and coverage for enterprise customers. Verizon also expanded its operational footprint by activating new 5G mmWave sites in partnership with local infrastructure providers, targeting underserved rural areas.

In strategic moves, Verizon completed the acquisition of remaining stakes in Blue Stream Fiber, bolstering its fiber-optic expansion in the Northeast. Additionally, the Federal Communications Commission approved Verizon’s spectrum lease extensions, facilitating further network densification.

No management changes were announced during this period.

📊 Earnings Report Summary

Verizon Communications Inc. (NYSE: VZ) reported its Q3 2025 financial results on October 29, 2025, highlighting significant growth in earnings and revenue. The company achieved an earnings per share (EPS) of $1.17, a remarkable 50% increase from $0.78 in Q3 2024, with adjusted EPS at $1.21. Total operating revenue rose to $33.8 billion, a 1.5% year-over-year increase, while net income surged to $5.1 billion, up 48% from the previous year. Wireless service revenue reached $21.0 billion, growing by 2.1%. Verizon added 306,000 broadband subscribers, including 261,000 in fixed wireless access. The company also announced a quarterly dividend increase to $0.6900 per share, marking the 19th consecutive year of dividend growth. Looking ahead, Verizon maintains its full-year guidance for moderate revenue and EBITDA growth, alongside solid cash flow expectations.

📈 Technical Analysis

Daily Price Change: +2.52%

Technical Indicators

Metric Value
Current Price $40.51
Daily Change 3.04%
MA20 $40.32
MA50 $42.01
MA200 $41.40
52W High $45.09
52W Low $35.79
% from 52W High -10.16%
% from 52W Low 13.20%
YTD % 7.70%
BB Position 54.61%
RSI 48.52
MACD -0.72

The current price of $40.51 reflects a daily change of +3.04%, indicating a positive shift in market sentiment. The stock is positioned 10.16% below its 52-week high of $45.09, yet it is 13.20% above its 52-week low of $35.79, suggesting a moderate recovery from recent lows.

The moving averages reveal a bearish trend, with the current price below the 50-day MA of $42.01 and the 200-day MA of $41.40, while the 20-day MA at $40.32 is closely aligned with the current price, indicating potential resistance.

Bollinger Bands show the price is near the lower band ($38.22), suggesting potential for upward movement. The RSI at 48.52 indicates the stock is neither overbought nor oversold. The MACD at -0.72 confirms bearish momentum, warranting caution for potential investors.

💰 Earnings History

Earnings Date EPS Estimate Reported EPS Surprise(%) Event Type
2025-04-22 1.15 1.19 3.69 Earnings
2025-01-24 1.1 1.1 0.46 Earnings
2024-10-22 1.18 1.19 1.17 Earnings
2024-07-22 1.15 1.15 0.26 Earnings
2024-04-22 1.12 1.15 2.73 Earnings
2024-01-23 1.07 1.08 0.56 Earnings
2023-10-24 1.18 1.22 3.54 Earnings
2023-07-25 1.17 1.21 3.86 Earnings

The earnings data reflects a generally positive trend in earnings per share (EPS) for the company. Over the past few quarters, the reported EPS has consistently met or exceeded estimates, indicating strong performance and effective management. Notably, in the latest reported quarter (April 2025), the company achieved a reported EPS of 1.19 against an estimate of 1.15, resulting in a positive surprise of 3.69%. This pattern of surpassing estimates is evident in previous quarters, with surprises ranging from 0.46% to 3.86%.

The company has shown a steady increase in EPS over time, moving from 1.07 in January 2024 to 1.19 in April 2025. This upward trajectory suggests not only operational efficiency but also potentially favorable market conditions or strategic initiatives contributing to revenue growth. Overall, the consistent positive surprises in EPS reflect a robust financial health and investor confidence, positioning the company well for future growth.

💵 Dividend History

Date Dividend
2025-10-10 0.69
2025-07-10 0.678
2025-04-10 0.678
2025-01-10 0.678
2024-10-10 0.678
2024-07-10 0.665
2024-04-09 0.665
2024-01-09 0.665

The provided dividend data indicates a consistent upward trend in dividend payouts over the observed periods. Starting from January 2024, the dividends were stable at $0.665, reflecting a cautious approach by the company during that time. However, by mid-2024, there was a noticeable increase to $0.678, suggesting improved financial health or a strategic decision to reward shareholders. This trend continued into 2025, with dividends rising to $0.690 by October, marking a significant increase over the previous year.

Such trends can be indicative of a company’s profitability and commitment to returning value to shareholders. The incremental increases in dividends can also signal management’s confidence in future earnings, which is often viewed positively by investors. Overall, the data reflects a positive trajectory, suggesting that the company is in a strong position to sustain and potentially increase dividends further, aligning with broader market trends favoring shareholder returns amidst economic recovery.

⭐ Analyst Ratings

Date Status Outer Rating Price
2025-10-21 00:00:00 Downgrade BNP Paribas Exane Outperform → Neutral $44
2025-09-02 00:00:00 Resumed Goldman Buy $49
2025-07-10 00:00:00 Resumed Morgan Stanley Equal-Weight $47
2025-07-07 00:00:00 Resumed BofA Securities Neutral $45

Recent rating changes for the stock indicate a mixed sentiment among analysts. BNP Paribas Exane’s downgrade from “Outperform” to “Neutral” on October 21, 2025, suggests a cautious outlook, potentially reflecting concerns about the company’s growth prospects or market conditions. This downgrade is significant as it indicates a shift from a favorable to a more reserved stance.

On the other hand, Goldman Sachs resumed coverage with a “Buy” rating on September 2, 2025, at a price of $49, signaling confidence in the stock’s potential for appreciation. This positive assessment contrasts with Morgan Stanley and BofA Securities, which resumed coverage with “Equal-Weight” and “Neutral” ratings, respectively, at prices of $47 and $45.

Overall, while there is some optimism reflected in Goldman Sachs’ rating, the downgrades and neutral assessments from other firms suggest a divided perspective on the stock’s future performance, highlighting the need for investors to consider both sides before making decisions.

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