S&P 500   3,585.62
DOW   28,725.51
QQQ   267.26
Want to Increase Your Conversion Rates? This Is the Biggest Threat to Your Success.
In 20 years, this little-known trader didn’t have a single losing year… (Ad)
Russia accused of 'kidnapping' head of Ukraine nuclear plant
EU chief: New Greece-Bulgaria gas pipeline 'means freedom'
In 20 years, this little-known trader didn’t have a single losing year… (Ad)
Danish Energy Agency says Nord Stream 2 gas pipeline under Baltic Sea appears to have stopped leaking gas
UK train strikes and energy hikes add to a week of turmoil
In 20 years, this little-known trader didn’t have a single losing year… (Ad)
Russia blindfolds, detains Ukraine nuclear plant chief
NIH to fund unproven ALS drugs under patient-backed law
S&P 500   3,585.62
DOW   28,725.51
QQQ   267.26
Want to Increase Your Conversion Rates? This Is the Biggest Threat to Your Success.
In 20 years, this little-known trader didn’t have a single losing year… (Ad)
Russia accused of 'kidnapping' head of Ukraine nuclear plant
EU chief: New Greece-Bulgaria gas pipeline 'means freedom'
In 20 years, this little-known trader didn’t have a single losing year… (Ad)
Danish Energy Agency says Nord Stream 2 gas pipeline under Baltic Sea appears to have stopped leaking gas
UK train strikes and energy hikes add to a week of turmoil
In 20 years, this little-known trader didn’t have a single losing year… (Ad)
Russia blindfolds, detains Ukraine nuclear plant chief
NIH to fund unproven ALS drugs under patient-backed law
S&P 500   3,585.62
DOW   28,725.51
QQQ   267.26
Want to Increase Your Conversion Rates? This Is the Biggest Threat to Your Success.
In 20 years, this little-known trader didn’t have a single losing year… (Ad)
Russia accused of 'kidnapping' head of Ukraine nuclear plant
EU chief: New Greece-Bulgaria gas pipeline 'means freedom'
In 20 years, this little-known trader didn’t have a single losing year… (Ad)
Danish Energy Agency says Nord Stream 2 gas pipeline under Baltic Sea appears to have stopped leaking gas
UK train strikes and energy hikes add to a week of turmoil
In 20 years, this little-known trader didn’t have a single losing year… (Ad)
Russia blindfolds, detains Ukraine nuclear plant chief
NIH to fund unproven ALS drugs under patient-backed law
S&P 500   3,585.62
DOW   28,725.51
QQQ   267.26
Want to Increase Your Conversion Rates? This Is the Biggest Threat to Your Success.
In 20 years, this little-known trader didn’t have a single losing year… (Ad)
Russia accused of 'kidnapping' head of Ukraine nuclear plant
EU chief: New Greece-Bulgaria gas pipeline 'means freedom'
In 20 years, this little-known trader didn’t have a single losing year… (Ad)
Danish Energy Agency says Nord Stream 2 gas pipeline under Baltic Sea appears to have stopped leaking gas
UK train strikes and energy hikes add to a week of turmoil
In 20 years, this little-known trader didn’t have a single losing year… (Ad)
Russia blindfolds, detains Ukraine nuclear plant chief
NIH to fund unproven ALS drugs under patient-backed law

Verizon Shares Drop On Earnings Miss, Lower Guidance

Verizon Shares Drop On Earnings Miss, Lower GuidanceShares of Verizon (NYSE: VZ) tumbled in pre-market trade Friday after the company reported second-quarter earnings that missed Wall Street expectations. 

Verizon earned $1.31 per share, down from $1.37 in the year-earlier quarter, missing analysts’ consensus views by a penny. 

Verizon said this quarter’s results included $435 million pre-tax loss from special items, including a mark-to-market adjustment for pension liabilities, and amortization of intangible assets related to TracFone and other acquisitions.

Revenue came in at $33.8 billion, essentially the same as last year’s second-quarter, and slightly above analysts’ estimate of $33.7 billion.

Verizon’s results followed Thursday’s punishment of wireless rival AT&T (NYSE: T). AT&T gapped down more than 7% after it lowered its free cash flow outlook, pointing to cited changing consumer habits in a slowing economy.  

Notably, the company slashed full-year guidance. It now expects wireless service revenue growth of 8.5% to 9.5%, down from prior guidance of 9% to 10% growth. 

It also cut its expectations for earnings growth to $5.10 to $5.25 per share, down from previous guidance for adjusted earnings per share of $5.40 to $5.55. 

According to MarketBeat data, Verizon met or beat earnings views in each of the previous nine quarters. 

Prior to Friday’s results, analysts had expected earnings to decline 1% for the full year, to $5.41 per share. 

History Of Dividend Increases

With the broader market continuing to languish, despite a nascent rally in recent days, dividend payers like Verizon may look appealing (despite weaker-than-expected results) to investors hoping to optimize their return. 


Verizon pays a dividend of $2.42 per share, for a 12-month trailing yield of 3.95%. The company increased its dividend annually for the past 16 years. 

The stock’s price is down 8.3% year-to-date, but when you include dividends, the total return is -1.87%. That’s a great illustration of why it’s crucial to include dividends in your return calculation. 

Verizon is a familiar name whose business model needs no explanation. The telecom giant has focused on building out its network in the past decade, and it now provides wider coverage than any of its rivals. Those improvements include expandson of Verizon’s fiber-optic network and adding 5G wireless technologies.

Verizon owns about 40% of domestic market share for postpaid phones. That’s more than either T-Mobile (NASDAQ: TMUS) or AT&T.

In its second-quarter report, the company cited total broadband net additions of 268,000, including 256,000 fixed wireless net additions. Total broadband net additions increased 39,000 from the first quarter of this year, and fixed wireless net additions increased 62,000 from the prior quarter. 

The company also noted net 36,000 Fios Internet additions.

When it comes to the wireless business, Verizon booked service revenue of $18.4 billion, a 9.1% year-over-year increase. It reported total retail postpaid churn of 1.03%, and retail postpaid phone churn of 0.81%. Churn is a key wireless industry metric, and tracks the number of customers who discontinue service and move to another carrier.

Postpaid phone net additions in the quarter totaled 12,000.

Verizon has been focusing on its wireless and broadband networks, clearly the businesses of the future, rather than its legacy fixed-line business. 

Of course, Verizon’s main competitors aren’t exactly hanging up the phone and calling it quits. They are also expanding their networks and adding new wireless coverage areas. 

YTD Performance Vs. Rivals

Here’s how Verizon’s 1.87% decline this year stacks up against its sector and key competitors:

One of the drivers of sector performance this year is Meta Platforms (NASDAQ: META), the sector’s most heavily weighted stock, which is down 45.57% year to date.

Verizon’s chart shows a decline that began in December 2020. Despite a growing dividend that helps offset technical weakness, it’s still worth evaluating whether a stock in a lengthy correction is worth purchasing, while other stocks - or securities such as inverse ETFs - are delivering positive returns at the moment. 
Verizon Shares Drop On Earnings Miss, Lower Guidance

Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Verizon Communications (VZ)
3.1603 of 5 stars
$37.97-1.7%6.74%7.61Hold$54.39
T-Mobile US (TMUS)
3.0855 of 5 stars
$134.17-0.3%N/A97.93Moderate Buy$170.81
Meta Platforms (META)
2.9136 of 5 stars
$135.68-0.5%N/A11.24Moderate Buy$253.44
Communication Services Select Sector SPDR Fund (XLC)N/A$47.89-1.2%1.48%N/AN/AN/A
Compare These Stocks  Add These Stocks to My Watchlist 

Should you invest $1,000 in Verizon Communications right now?

Before you consider Verizon Communications, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Verizon Communications wasn't on the list.

While Verizon Communications currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

Kate Stalter

About Kate Stalter

Contributing Author: Retirement, Asset Allocation, and Tax Strategies

Kate Stalter is a Series 65-licensed asset manager, with more than two decades of experience in various areas of financial services. As an investment advisor and financial planner, Kate personally manages client portfolios, with a focus on successful retirement, including asset allocation, income generation and tax strategies. Kate also serves as a capital-markets contributor at Forbes.com, and is an expert columnist for the investment advisory channel at U.S. News & World Report.
Contact Kate Stalter via email at stalterkate@gmail.com.
Free Email Newsletter

Complete the form below to receive the latest headlines and analysts' recommendations for your stocks with our free daily email newsletter:

Most Read This Week

Recent Articles

Search Headlines:

Latest PodcastFed Raises Rates: 3 Stocks to Watch Newmont Mining, Walmart, AMC

Axel Merk, President and CIO of Merk Investments has three very different stocks he frames within the current market and economic conditions.

MarketBeat Resources

Premium Research Tools

MarketBeat All Access subscribers can access stock screeners, the Idea Engine, data export tools, research reports, and other premium tools.

Discover All Access

Market Data and Calendars

Looking for new stock ideas? Want to see which stocks are moving? View our full suite of financial calendars and market data tables, all for free.

View Market Data

Investing Education and Resources

Receive a free world-class investing education from MarketBeat. Learn about financial terms, types of investments, trading strategies and more.

Financial Terms
Details Here
MarketBeat - Stock Market News and Research Tools logo

MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis. Whether you’re looking for analyst ratings, corporate buybacks, dividends, earnings, economic reports, financials, insider trades, IPOs, SEC filings or stock splits, MarketBeat has the objective information you need to analyze any stock. Learn more about MarketBeat.

MarketBeat is accredited by the Better Business Bureau MarketBeat is rated as Great on TrustPilot

© American Consumer News, LLC dba MarketBeat® 2010-2022. All rights reserved.
326 E 8th St #105, Sioux Falls, SD 57103 | contact@marketbeat.com | (844) 978-6257
MarketBeat does not provide personalized financial advice and does not issue recommendations or offers to buy stock or sell any security.

Our Accessibility Statement | Terms of Service | Privacy Policy | Do Not Sell My Information | RSS Feeds

© 2022 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see Barchart's disclaimer.