Verizon Communications Soars 2% Following CEO’s Optimistic Report on Subscriber Growth and Cost Reduction Plans
January 5, 2023
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It provides wireless, broadband, and cable television services and also has a large media business. Its stock is listed on the New York Stock Exchange under the symbol VZ. On Wednesday, shares of Verizon Communications ($NYSE:VZ) rose by more than 2% at the start of trading following a report by its CEO, Hans Vestberg, that the company had gained subscribers in the fourth quarter and would reduce its 2023 spending plans due to the shaky worldwide economy. During a Citi-hosted investment conference, Vestberg commented that the consumer was still in “good” health and that store visits had increased.
He also said that Verizon’s free cash flow was expected to rise 3-4% this year, driven by wireless cost savings and higher cash flow from its media businesses. Investors responded positively to Vestberg’s optimistic report and were encouraged by the progress being made on subscriber growth as well as cost reduction plans. The share price of Verizon Communications rose 2% in morning trading on Wednesday following Vestberg’s remarks.
Stock Price
On Wednesday, the stock opened at $40.5 and closed at $41.1, up by 2.5% from prior closing price of 40.1. This is the highest close for the stock since January. The news coverage for the company has been mostly positive, with analysts suggesting that the company has a bright future ahead. The CEO of Verizon Communications reported that the company had achieved impressive growth in both customer base and revenue. They also revealed plans to reduce costs in order to improve profitability.
Additionally, the company is focusing on increasing efficiency and productivity, which will lead to cost savings in the long term. In addition to the cost reduction plans, Verizon Communications is also continuing to invest in its network and services. These initiatives are expected to further enhance customer satisfaction and drive strong growth in the coming years. Overall, the news coverage surrounding Verizon Communications has been very positive and investors are responding positively to the news. With strong subscriber growth and cost reduction plans in place, it appears that the company is in a good position to continue its success in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Verizon Communications. More…
| Total Revenues | Net Income | Net Margin |
| 135.65k | 19.29k | 16.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Verizon Communications. More…
| Operations | Investing | Financing |
| 36.58k | -33.45k | -10.64k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Verizon Communications. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 375.09k | 286.31k | 20.83 |
Key Ratios Snapshot
Some of the financial key ratios for Verizon Communications are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 1.1% | 2.1% | 21.3% |
| FCF Margin | ROE | ROA |
| 8.0% | 20.8% | 4.8% |
VI Analysis
VERIZON COMMUNICATIONS is a medium risk investment according to the VI Risk Rating. This rating is based on the company’s fundamentals and its long-term potential. The VI App has identified three risk warnings in the income sheet, balance sheet, and cashflow statement. The income statement includes details of the company’s revenue and expenses, which are used to calculate the profitability of the company. The balance sheet includes information on the company’s assets and liabilities, which are important to assess the financial health of the company. The cashflow statement provides details on the company’s cash inflows and outflows, which helps to determine the liquidity of the company. Investors should be aware that these financial statements can be subject to manipulation and should be carefully studied before making an investment decision. Additionally, it is essential to consider the company’s management and its competitive advantages in order to determine whether it is a good long term investment. Overall, VERIZON COMMUNICATIONS is a medium risk investment that warrants further investigation. Investors should use the resources available to them, such as the VI App, to assess the financial and business fundamentals of this company before investing. More…
VI Peers
Verizon Communications Inc is a leading telecommunications, Internet, and television provider in the United States. It has a wide range of competitors, including AT&T Inc, T-Mobile US Inc, America Movil SAB de CV. Each of these companies has its own strengths and weaknesses, but Verizon is generally considered to be a leader in the industry.
– AT&T Inc ($NYSE:T)
AT&T Inc. is an American multinational conglomerate holding company headquartered at Whitacre Tower in Downtown Dallas, Texas. It is the world’s largest telecommunications company, the second largest provider of mobile telephone services, and the largest provider of fixed telephone services in the United States through AT&T Communications. Since June 14, 2018, it also owns the media conglomerate WarnerMedia, making it the world’s largest entertainment company in terms of revenue. As of 2021, AT&T is ranked #9 on the Fortune 500 rankings of the largest United States corporations by total revenue.
AT&T Inc. has a market cap of 110.74B as of 2022 and a Return on Equity of 12.91%. AT&T is the world’s largest telecommunications company and the second largest provider of mobile telephone services. The company also owns the media conglomerate WarnerMedia, making it the world’s largest entertainment company in terms of revenue.
– T-Mobile US Inc ($NASDAQ:TMUS)
T-Mobile US, Inc., together with its subsidiaries, provides mobile communications services in the United States, Puerto Rico, and the U.S. Virgin Islands. The company offers voice, messaging, and data services to approximately 79 million customers as of the end of 2019. It also provides wireless devices, including smartphones, tablets, and other mobile communication devices; and accessories that are manufactured by various suppliers. In addition, the company offers its services to business and government customers; and wholesale customers, such as mobile virtual network operators and other telecommunications carriers. T-Mobile US, Inc. was founded in 1994 and is headquartered in Bellevue, Washington.
– America Movil SAB de CV ($OTCPK:AMXVF)
America Movil SAB de CV, also known as Telcel, is a Mexican telecommunications company headquartered in Mexico City, Mexico. As of 2022, it is the largest mobile network operator in Mexico, with a market share of approximately 70%. Telcel also provides fixed-line, broadband, and pay TV services in Mexico. The company was founded in 1972 and is a subsidiary of America Movil.
Summary
Verizon Communications has been performing well lately, with its stock value increasing by 2% following an optimistic report from its CEO on subscriber growth and cost reduction plans. Investors are encouraged by the company’s positive outlook and have responded positively to the news. Verizon has been focusing on reducing costs while expanding subscriber base, which has provided a strong foundation for future growth. This positive outlook has helped to boost investor confidence in Verizon Communications and is likely to continue doing so in the foreseeable future.
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