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
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
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
-
I'm want to give my 3 grandkids $5K each for Christmas.You're comfortably retired and want to give your grandkids a big Christmas check, but their parents are worried they might spend it all. We ask the pros for help.
-
If You're Not Doing Roth Conversions, You Need to Read ThisRoth conversions and other Roth strategies can be complex, but don't dismiss these tax planning tools outright. They could really work for you and your heirs.
-
Could Traditional Retirement Expectations Be Killing Us?A retirement psychologist makes the case: A fulfilling retirement begins with a blueprint for living, rather than simply the accumulation of a large nest egg.
-
I'm a Financial Planner: If You're Not Doing Roth Conversions, You Need to Read This
Roth conversions and other Roth strategies can be complex, but don't dismiss these tax planning tools outright. They could really work for you and your heirs.
-
Could Traditional Retirement Expectations Be Killing Us? A Retirement Psychologist Makes the Case
A retirement psychologist makes the case: A fulfilling retirement begins with a blueprint for living, rather than simply the accumulation of a large nest egg.
-
I'm a Financial Adviser: This Is How You Can Adapt to Social Security UncertaintyRather than letting the unknowns make you anxious, focus on building a flexible income strategy that can adapt to possible future Social Security changes.
-
I'm a Financial Planner for Millionaires: Here's How to Give Your Kids Cash Gifts Without Triggering IRS PaperworkMost people can gift large sums without paying tax or filing a return, especially by structuring gifts across two tax years or splitting gifts with a spouse.
-
'Boomer Candy' Investments Might Seem Sweet, But They Can Have a Sour AftertasteProducts such as index annuities, structured notes and buffered ETFs might seem appealing, but sometimes they can rob you of flexibility and trap your capital.
-
AI Stocks Lead Nasdaq's 398-Point Nosedive: Stock Market TodayThe major stock market indexes do not yet reflect the bullish tendencies of sector rotation and broadening participation.
-
Got $100 to Gamble? These Penny Stocks Could Be Worth the RideVolatile penny stocks are high-risk plays with potentially high rewards. If you have $100 you can afford to lose, these three names are worth a look.
-
Quick Question: Are You Planning for a 20-Year Retirement or a 30-Year Retirement?You probably should be planning for a much longer retirement than you are. To avoid running out of retirement savings, you really need to make a plan.
