Verizon Sails to the Top of the Dow After Earnings Beat: What to Know
Verizon stock is one of the best Dow Jones stocks Friday after the telecommunications giant beat estimates for its fourth quarter. Here's what you need to know.
Verizon Communications (VZ) is one the best Dow Jones stocks Friday after the telecommunications giant beat top- and bottom-line expectations for its fourth quarter.
In the three months ending December 31, Verizon said its revenue increased 1.6% year over year to $35.7 billion. Its earnings per share (EPS) rose 1.9% from the year-ago period to $1.10.
Also notable was a 3.1% increase in wireless service revenue to $20 billion, which Verizon says is a result of price hikes and sales perks.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"With innovations powered by the best network in the country, we are bringing the best experiences to our customers, in life and work," said Verizon CEO Hans Vestberg in a statement. "It's only going to get better this year and beyond, as we have continued to strengthen Verizon with the pending Frontier acquisition, new satellite partnerships, and ongoing AI [artificial intelligence] enablement, which we expect will enhance and broaden our network for everybody we serve."
Verizon's top- and bottom-line results beat analysts' expectations. Wall Street was anticipating revenue of $35.3 billion and earnings of $1.09 per share, according to MSN.
For its new fiscal year, Verizon said it expects to achieve earnings growth of flat to 3%, implying a range of $4.59 to $4.73. The midpoint of this range, $4.66, came in below analysts' expectations for earnings of $4.72 per share.
Is Verizon stock a buy, sell or hold?
Verizon Communications has lagged the broader market over the past 12 months, roughly flat on a total return basis (price change plus dividends) vs the S&P 500's 27.5% gain. But Wall Street remains bullish on the blue chip stock.
According to S&P Global Market Intelligence, the average analyst target price for VZ stock is $47.16, representing implied upside of nearly 20% to current levels. Meanwhile, the consensus recommendation is aBuy.
Financial services firm Argus Research is one of those outfits with a Buy rating on VZ stock, along with a $42 price target.
"Verizon stresses that it looks for profitable growth from high value subscribers and its recent price increases bear that out. Management has improved wireless service revenue growth, adjusted EBITDA [earnings before interest, taxes, depreciation and amortization] expansion, and free cash flow in recent quarters," wrote Argus analyst Joseph Bonner.
He added that the company "continues to benefit from strong customer loyalty and service plan upgrades."
Related Content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
Stocks Hit Fresh Highs Ahead of the Fed As Earnings Pump Optimism: Stock Market TodaySHW and UNH were two of the best Dow Jones stocks Tuesday, thanks to solid earnings reports, and MSFT closed with a $4 trillion market cap.
-
Selling Your Haunted House? What You Have to Tell Buyers (and What You Don’t)You don’t need ghosts to spook buyers, sometimes a home’s past is enough. Here’s what sellers should know about disclosure laws, pricing and perception when a property has a haunted history.
-
Stocks Hit Fresh Highs Ahead of the Fed As Earnings Pump Optimism: Stock Market TodaySHW and UNH were two of the best Dow Jones stocks Tuesday, thanks to solid earnings reports, and MSFT closed with a $4 trillion market cap.
-
Targa Resources, Take-Two Interactive, Boston Scientific: Why Experts Rate These Stocks at Strong BuyWall Street is highly bullish on these three high-quality stocks.
-
Debunking Three Myths About Defined Outcome ETFs (aka Buffered ETFs)Defined outcome ETFs offer a middle ground between traditional equity and fixed-income investments, helping provide downside protection and upside participation.
-
This Is Why Judge Judy Says Details Are Important in Contracts: This Contract Had HolesA couple's disastrous experience with reclaimed wood flooring led to safety hazards and a lesson in the critical importance of detailed contracts.
-
US-China Trade Hopes Send Stocks to New Highs: Stock Market TodayApple and Microsoft are on track to join Nvidia in the $4 trillion market cap club.
-
A Lesson From the School of Rock (and a Financial Adviser) as the Markets Go Around and AroundIt's hard to hold your nerve during a downturn, but next time the markets take a tumble, remember this quick rock 'n' roll tutorial and aim to stay invested.
-
I'm a Financial Pro: This Is How You Can Guide Your Heirs Through the Great Wealth TransferFocus on creating a clear estate plan, communicating your wishes early to avoid family conflict, leaving an ethical will with your values and wisdom and preparing them practically and emotionally.
-
To Reap the Full Benefits of Tax-Loss Harvesting, Consider This Investment Strategist's StepsTax-loss harvesting can offer more advantages for investors than tax relief. Over the long term, it can potentially help you maintain a robust portfolio and build wealth.