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Verizon Stock Falls Despite Third Straight Guidance Raise
Verizon reported third-quarter adjusted EPS of $1.31, above the $1.27 consensus, but revenue of $34.31 billion fell short of the $34.77 billion estimate as equipment revenue dropped 9%. Shares were down 3.78% intraday as of 9:30 a.m. ET.
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What happened
Verizon reported third-quarter adjusted EPS of $1.31, above the $1.27 consensus, but revenue of $34.31 billion fell short of the $34.77 billion estimate as equipment revenue dropped 9%. Shares were down 3.78% intraday as of 9:30 a.m. ET.
Confirmed
Global impact / market context
The stock fell because revenue missed expectations even though profit beat, as equipment revenue dropped 9% on fewer phone upgrades and reduced device subsidies. That signals weaker hardware sales can offset stronger subscriber growth and service revenue trends.
Analyst inference
Verizon raised full-year guidance for the third straight quarter and free cash flow rose 12.1% to $7.8 billion, yet the shares still declined. This suggests investors focused on the revenue shortfall and lower equipment sales rather than the improved profit and cash generation.
Analyst inference
What to watch
- Verizon raised its full-year guidance for the third straight quarter, lifting postpaid phone net additions to 1.1 million to 1.2 million and adjusted EPS to $5.04 to $5.06. Confirmed
- Verizon expects mobility and broadband service revenue to grow about 4% in the fourth quarter, and it signed an AI infrastructure agreement with Amazon Web Services valued at more than $2 billion. Confirmed
- Watch whether customers continue holding devices longer and whether the strategic cut in device subsidies keeps equipment revenue weak, which could pressure overall revenue despite subscriber growth. Analyst inference