Verizon Q4 adjusted EPS beats expectations on Frontier acquisition

Overview

• Telecom giant's Q4 adjusted EPS beat analyst expectations

• Company's Q4 total operating revenue was $36.4 bln

• Verizon completed Frontier acquisition, expanding fiber access to over 30 mln locations

Outlook

• Verizon expects total retail postpaid phone net additions of 750,000 to 1.0 mln in 2026

• Company forecasts 2026 mobility and broadband service revenue growth of 2% to 3%

• Verizon projects 2026 adjusted EPS of $4.90 to $4.95, up 4% to 5% year-over-year

Result Drivers

• MOBILITY AND BROADBAND GROWTH - Verizon reported over 1 million total net additions in Q4, the highest since 2019, with 616,000 postpaid phone net additions

• FRONTIER ACQUISITION - Acquisition expanded fiber access to over 30 million homes and businesses, enhancing national mobility and broadband strategy

• STRATEGIC TURNAROUND - CEO Dan Schulman emphasized a strategic shift towards customer satisfaction and operational efficiency, marking a new phase for Verizon

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 10 "strong buy" or "buy", 16 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the integrated telecommunications services peer group is "buy."

• Wall Street's median 12-month price target for Verizon Communications Inc is $47.00, about 18.1% above its January 29 closing price of $39.81

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nGNXFtHfj

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