Verizon Stock Dips As Consumer Business Continues To Struggle

Verizon Communications (VZ) early Tuesday reported first-quarter adjusted earnings that edged by views while revenue fell short of estimates. Verizon stock slipped as its wireless consumer business continued to struggle.

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For the March quarter, Verizon earnings were $1.20 an adjusted share, one-time excluding special items related to the Tracfone acquisition. Profit fell 11% from a year earlier. Revenue fell 1.9% to $32.9 billion.

A year earlier, Verizon earned $1.35 a share on revenue of $33.6 billion. Analysts had projected Verizon earnings of $1.19 a share on revenue of $33.6 billion for the quarter.

Verizon Stock: Consumer Business Struggles

Verizon said it lost 127,000 postpaid wireless phone subscribers, vs. analyst estimates for a loss of 120,000, including both consumer and business customers. The consumer unit lost 263,000 postpaid phone subscribers.

A year earlier, Verizon lost 36,000 postapid phone subscribers. In Q1 2023, AT&T (T) added 424,000 postpaid phone subscribers, topping estimates.

The telecom company added 393,000 fixed wireless broadband customers, slightly more than the previous quarter.

On the stock market today, Verizon stock fell 0.7% to 36.83.  Heading into the Verizon earnings report, shares had retreated 5% in 2023. VZ stock sank 3.65% on Friday, amid disappointing results from rival AT&T (T).

Verizon stock tumbled 24% last year. VZ stock holds a Relative Strength Rating of 24 out of a possible 99, according to IBD Stock Checkup.

Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.

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