Verizon Postpaid Net Adds Decline, But Broadband Growth Is 'Close To The Best': Analyst

Shares of Verizon Communications Inc. VZ were under pressure in early trading on Tuesday, after declining more than 6% following the company's second-quarter results.

The results came amid an exciting earnings season. Here are some key analyst takeaways.

• RBC Capital Markets analyst Jonathan Atkin reiterated a Sector Perform rating and price target of $42.
• KeyBanc Capital Markets analyst Brandon Nispel maintained an Overweight rating and price target of $46.

Check out other analyst stock ratings.

RBC Capital Markets: Verizon reported its quarterly revenues and EBITDA broadly in-line with consensus, Atkin said in a note. FCF delivered a beat on the timing of capex. While adjusted earnings of $1.15 per share matched expectations, free cash flows of $5.8 billion surpassed consensus of $5.4 billion "on the timing of capex," he added.

Verizon's retail postpaid net adds declined by 8,000, which appeared close to consensus of a decline of 7,000, the reported number of around 110,000 second-number subscribers, versus around 30,000 in the first quarter, the analyst stated. "FWA growth continued with 378K additions, aided by C-Band deployment to new markets," he further wrote.

KeyBanc Capital Markets: The stock’s selloff after Verizon's earnings release seems "unjustified," Nispel said. He added that the company's VCG postpaid phone net adds are improving year-on-year, even after excluding second-number subscribers.

"In addition, VZ’s Broadband growth continues to be close to the best in the industry," the analyst stated. "We see the potential for VZ to come toward the high end of guidance for Wireless Service revenue and Adj. EBITDA and find the stock attractive," he further wrote.

VZ Price Action: Shares of Verizon Communications had declined by 0.28% to $38.98 at the time of publication on Tuesday.

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