Multinational telecommunications conglomerate Verizon (VZ) has reported better-than-expected second-quarter 2021 financial results. The New York-based company offers corporate networking solutions, video and data services, local and long-distance voice services, managed network services and network access.
The company reported adjusted earnings per share (EPS) of $1.37, up from $1.18 registered in the second quarter of 2020. The number surpassed the Street’s estimate of $1.29. Total consolidated operating revenues increased nearly 11% year-over-year to $33.8 billion, surpassing analysts’ expectations of $32.68 billion.
Consumer revenues grew 11.2% year-over-year to $23.5 billion; Business revenues climbed 3.7% to $7.8 billion; Wireless revenues surged 5.9% to $16.9 billion; and Media revenues rose almost 50% to $2.1 billion. (See Verizon stock chart on TipRanks)
The Chief Financial Officer at Verizon, Matt Ellis, said, “Our strong first-half performance and the momentum in our business gives us the confidence to raise our total wireless service revenue growth guidance between 3.5% and 4%, an update from prior guidance for 2021 total wireless service revenue growth of at least 3%. We are also raising our adjusted EPS guidance to the range of $5.25 to $5.35, an update from prior guidance for 2021 adjusted EPS of $5 to $5.15.”
On July 7, Tigress Financial analyst Ivan Feinseth reiterated a Buy rating on the stock with a price target of $67 (19.8% upside potential). In a research note to investors, the analyst said, “Verizon continues to benefit from the ongoing rollout of its transformative 5G network.”
Overall, the stock has a Hold consensus based on 3 Buys, 5 Holds and 1 Sell. The average Verizon price target of $60.71 implies 8.5% upside potential. Shares have lost almost 5% year-to-date.
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