The stock of Verizon Communications (VZ) rallied 2% on April 27 after the wireless internet provider reported quarterly financial results and forward guidance that surpassed Wall Street’s expectations.
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The New York telecommunications firm announced earnings per share (EPS) of $1.28, which topped the $1.21 forecast on Wall Street. Revenue in the first quarter totaled $34.4 billion, which was slightly below the consensus expectation of analysts. Sales were up 3% year-over-year.
However, what really impressed was that Verizon added 55,000 net postpaid phone customers during Q1 of this year. It was the first increase in the category since 2013. Wall Street had expected Verizon to lose 88,100 customers in the quarter.
Verizon’s Guidance
In addition to the top and bottom-line beats Verizon also raised its forward guidance for the entire year, saying its multiyear transformation strategy is starting to work. Management said that they now expect earnings of $4.95 to $4.99 a share for all of 2026.
The midpoint of that range is above the $4.90 a share that analysts had forecast for the company. Along with the customer additions, Verizon could also use the rally in its shares. VZ stock is down 20% over the past five years.
Is VZ Stock a Buy?
Verizon’s stock has a consensus Moderate Buy rating among 17 analysts. That rating is based on seven Buy and 10 Hold recommendations issued in the last three months. The average VZ price target of $50.97 implies 8% upside from current levels. These ratings could change after Verizon’s financial results.
