- Verizon Communications Inc VZ reported a third-quarter FY22 sales growth of 4% year-on-year to $34.2 billion, beating the consensus of $33.8 billion.
- Adjusted EPS of $1.32 beat the consensus of $1.29.
- Total wireless service revenue was $18.8 billion, up 10% Y/Y, reflecting the company's ownership of TracFone, further progress on its premium Unlimited strategy, and substantial Business volumes.
- The quarter marked 377,000 total broadband net additions.
- Total Verizon Business revenues were $7.8 billion, down 1.9% Y/Y. Total Verizon Consumer revenue grew 10.8% Y/Y to $25.8 billion.
- Consumer wireless retail postpaid churn was 1.10%, and wireless retail postpaid phone churn was 0.88%.
- The competitive dynamics drove wireless retail postpaid phone net losses of 189,000 due to a decline in gross additions. Verizon Consumer had fixed wireless net additions of 234,000.
- The consumer segment EBITDA margin was 40.9% versus 45% a year earlier, while the business segment EBITDA margin was 22.7% versus 24.8% a year ago.
- Adjusted EBITDA of $12.2 billion was down 0.4% Y/Y.
- Chairman and CEO Hans Vestberg said, "The pricing actions we took earlier this year, as well as our new cost savings program, show that we are being deliberate and strategic in our decisions to strengthen our business."
- Outlook: Verizon reiterated the outlook for FY22 revenue growth guidance. It expected FY22 reported wireless service revenue growth of 8.5% - 9.5%.
- It reiterated service and other revenue growth of (1)% - 0, and FY22 adjusted EPS as $5.10 - $5.25.e
- Price action: VZ shares traded lower by 3.24% at $35.80 in premarket on the last check Friday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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