"Net income surged 48.4% to $5.06 billion from $3.41 billion a year ago. That dramatic jump masks the underlying story: one-time tax benefits inflated the bottom line, while core operations remained sluggish. Wireless service revenue grew 2.1% to $21.0 billion, and equipment revenue climbed 5.2% to $5.6 billion. Both segments showed modest momentum, but neither offset the broader revenue miss."
"The Real Problem: Scale Isn't Growing Total revenue grew just 1.5% year over year. That's the core issue. EPS edged up 1.7%, but that's largely a function of share buybacks, not earnings expansion. When you strip away the tax benefit that inflated net income, the operational picture looks flat. Verizon faces structural headwinds in a mature telecom market where pricing power has eroded and competitive intensity remains high."
"Verizon Communications ( NYSE: VZ) reported Q3 earnings that fell short on revenue and with a slight beat on earnings per share, and the stock is moving higher pre-market. Revenue came in at $33.82 billion, missing the $35.31 billion estimate by $1.49 billion. EPS landed at $1.21, beating by $0.02 the $1.19 consensus. That $1.49 billion gap signals either softer demand than anticipated or a revenue recognition issue worth monitoring on the earnings call."
Verizon reported Q3 revenue of $33.82 billion, missing the $35.31 billion estimate by $1.49 billion. EPS was $1.21, a $0.02 beat to consensus, and rose 1.7% year over year. Net income jumped 48.4% to $5.06 billion due largely to one-time tax benefits rather than operational improvement. Wireless service revenue increased 2.1% to $21.0 billion and equipment revenue rose 5.2% to $5.6 billion. Total revenue grew 1.5% year over year, reflecting limited top-line momentum. Free cash flow reached $15.76 billion and supported a raise in the quarterly dividend to $0.69 per share. Structural headwinds and mature market dynamics continue to constrain growth.
Read at 24/7 Wall St.
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