Verizon’s Stock (VZ) Jumps on Earnings Beat and Raise – Eyes on Resistance

Verizon's stock (VZ) is trading 4.75% higher this morning, as second-quarter earnings came in strong, outperforming the street.

The firm reported revenue of $34.5 billion, exceeding the consensus of $33.55 billion, which coupled with raised full-year guidance, has boosted sentiment in the stock. This morning's move will further reinforce support around the $40 level, and potentially set's up a retest of the $44 resistance in the sessions to come.

Chairman and CEO Hans Vestberg attributed the strong results to Verizon’s high-quality customer base, diverse growth avenues, and a disciplined, segmented approach. He emphasized the company's commitment to innovation and enhancing its products and services through its leading network and financial strength.

The positive momentum has prompted Verizon to raise its full-year guidance for adjusted EBITDA, adjusted EPS, and free cash flow.

The company added 293,000 broadband net additions, bringing the total broadband connections to over 12.9 million, a 12.2% increase year-over-year. Notably, fixed wireless access (FWA) played a crucial role, with 278,000 net additions, expanding the FWA subscriber base to over 5.1 million.

However, the company's Q2 results also revealed a slight hiccup in subscriber metrics. Verizon reported a net loss of 9,000 monthly bill-paying wireless subscribers, falling short of analyst expectations of a 13,000 increase.

This decline is attributed, in part, to customer churn following price increases implemented earlier in the year. While this figure raises some concerns, the overall wireless service revenue still experienced a 2.2% increase, driven by customers upgrading to higher-tier plans and opting for add-ons like streaming services.

This suggests that Verizon's strategy of focusing on premium offerings is proving effective, even if it results in some customer attrition at the lower end of the market.