Vodafone Group (NASDAQ:VOD) Releases Earnings Results, Misses Estimates By $1.79 EPS

Key Points

• Vodafone reported a quarterly loss of $1.18 per share, missing the $0.61-per-share consensus estimate; revenue of $12.38 billion also fell short of analysts’ $25.32 billion forecast.
• The company raised FY 2027 guidance, while Q2 service revenue growth accelerated to 6.4%; it also cited strong growth in Vodafone Business, Africa and Türkiye.
• Germany remains a headwind: an ECJ ruling reduced first-half EBITDA by about €100 million, and Vodafone recorded a non-cash impairment and announced 2,300 job cuts.

Vodafone Group (NASDAQ:VOD - Get Free Report) announced its earnings results on Tuesday. The cell phone carrier reported ($1.18) earnings per share for the quarter, missing analysts' consensus estimates of $0.61 by ($1.79), FiscalAI reports. The company had revenue of $12.38 billion for the quarter, compared to analyst estimates of $25.32 billion.

Here are the key takeaways from Vodafone Group's conference call:

• Vodafone raised FY 2027 guidance; the midpoint now implies about 7% organic Adjusted EBITDAaL growth and 21% Adjusted free cash flow growth.
• First-half momentum strengthened, with Q2 service revenue growth accelerating to 6.4%, and Vodafone Business growing 6.6%; Africa and Türkiye also delivered double-digit organic growth.
• Vodafone reported more than €200 million of gross savings in the first half and expects over €200 million of net OpEx savings this fiscal year, as it works toward more than €1 billion in annual net savings by FY 2030.
• Germany remains a challenge despite improving broadband and B2B trends. The ECJ ruling reduced EBITDA by about €100 million in the half, Vodafone recorded a non-cash impairment, and it announced another 2,300 role reductions.
• Vodafone’s increased Safaricom stake is facing a legal challenge in Kenya; the company said the appeal is being fast-tracked and that the court has maintained the status quo while the process continues.

Vodafone Group Trading Down 1.8%

Vodafone Group stock traded down $0.28 during mid-day trading on Tuesday, reaching $15.40. 1,203,871 shares of the company traded hands, compared to its average volume of 4,080,334. Vodafone Group has a 52-week low of $11.71 and a 52-week high of $17.71. The company has a quick ratio of 1.11, a current ratio of 1.14 and a debt-to-equity ratio of 0.84. The firm's 50 day moving average price is $16.33 and its 200 day moving average price is $15.43.

Analyst Ratings Changes

A number of brokerages recently commented on VOD. The Goldman Sachs Group raised Vodafone Group from a "sell" rating to a "buy" rating in a research report on Friday, September 4th. DZ Bank reiterated a "neutral" rating on shares of Vodafone Group in a research note on Monday, August 17th. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating on shares of Vodafone Group in a research note on Friday, October 9th. Wall Street Zen lowered Vodafone Group from a "buy" rating to a "hold" rating in a research note on Tuesday, September 22nd. Finally, Zacks Research raised Vodafone Group from a "strong sell" rating to a "hold" rating in a report on Tuesday, November 3rd. Four analysts have rated the stock with a Buy rating, four have given a Hold rating and four have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Hold" and a consensus target price of $13.13.

About Vodafone Group

Vodafone Group is a telecommunications company headquartered in the United Kingdom. It provides mobile and fixed-line connectivity, broadband, voice and data services to consumers, businesses and public-sector organizations.

The company also offers business technology services, including Internet of Things connectivity and digital solutions. Its operations and services span Europe and Africa, with Vodacom serving as a major part of its African business, and it works with partner networks to serve customers in other markets.

Vodafone traces its roots to Racal Telecom, which was established in 1984 and became an independent company in 1991.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.