Verizon Communications Inc. ($VZ) Earnings (Q3 FY22)

 Verizon Communications Inc. ($VZ) Earnings and Opinion:


Verizon is a company in the Communication Services sector and operates in the Telecom Services industry. The company offers communications, technology, information, and entertainment products and services to consumers, businesses, and governmental entities worldwide. Verizon was incorporated in 1983 and is headquartered in New York, New York. The company made its trading debut as Verizon in 2000.

Verizon Financial Results:

  • Revenue of $34.24B beating expectations of $33.8B
  • Total Wireless subscribers of 143M beating expectations of 138M
  • Adjusted EBITDA of 12.2B beating expectations of $12.07B
  • Adj Diluted EPS of $1.32 beating expectations of $1.28
Opinion:
Verizon saw some negative sentiment in Fridays trading session. The company reported earnings before the market opened on Friday. Verizon had some beats on key metrics, but it was the net post-paid subscription additions that held them back. This could be a key component to the theory that they are losing market share to other competitors. Management has come out with strategies to handle this, before it gets too far out of reach. Verizon is having trouble with cash flow generation, as capital spending reduction is the only sign of positive change here. The earnings report was pretty solid overall, they just have the current challenges that showed no sign of improvement. Looking at overall valuation, the company is currently undervalued. The P/E ratio is at 6.93, which is lower than the median of 16.66. EV/EBITDA is at 6.74, which is below the median at 8.05. The Dividend Yield is solid at 7.19%. In my opinion, Verizon is not a bad company at all. However, their is one problem. AT&T, which is a competitor, beats them in pretty much all categories, while being traded a lower valuation. That is your answer and all you need to know. Although Verizon doesn't seem like a bad play, you are better putting your money towards AT&T because they are healthier and cheaper. 



*Information from Bloomberg and Yahoo Finance

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