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Verizon Posts Subscriber Gains Amidst Stock Price Decline

Verizon Communications shows strong subscriber growth but its stock continues to decline. Investors may take interest in its robust dividend and potential growth. Is it a buy? Find out here.

Date: 
AI Rating:   6
Earnings Per Share (EPS)
Verizon reported an adjusted EPS increase from $1.08 a year ago to $1.10, indicating slight growth in earnings, which could positively impact investor sentiment.
Revenue Growth
The company achieved a total revenue growth of 1.6% year-over-year, reaching $35.7 billion. This is a sign of resilience despite competitive pressures.
Free Cash Flow (FCF)
Verizon generated $19.8 billion in free cash flow, which supports its ability to pay dividends and invest in future growth initiatives. The projected free cash flow for 2025 is between $17.5 billion and $18.5 billion, sustaining future dividend payouts.
Profit Margins
Adjusted EBITDA rose 1.7% to $11.9 billion, reflecting good operational performance. The leverage ratio on unsecured debt is 2.3, suggesting prudent management of debt levels, which is critical for maintaining profitability.
While Verizon's ability to add wireless subscribers is commendable, the stock price's stagnation could be attributed to broader market challenges or demographic shifts affecting growth.
This report indicates a mixed picture for investors, with a solid dividend appeal against a backdrop of steady operational growth but stagnant stock performance against competitors like AT&T, which is prioritizing share buybacks.
Overall, despite positive metrics in EPS and FCF, persistent stock declines may lead to cautious sentiment among investors.
Stocks:  VZ T