After executing a $10b expense reduction in 2018 - 2021, the company plans $5b-6b in additional expenditures related to the deployment of the company's C-Band 5G network. The bottom line is future expense reductions (RIFs for starters) needed to offset the additional C-Band expense.
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VZs industry leading branded credit card. Never has a company eho wasnt a credit card company put their name on one! Oh wait even the place I got my bicycle has one.
Revenue, profits and cash flow may be limping along, but hey, how about those ESG, DEI and employee volunteer numbers? C'mon man! Is that something to celebrate or what? Who cares about selling telecom when you are saving humanity and the planet?
WSJ paints the real picture. Hans and his executive team failed as leaders and lost their focus. Also see Matt Ellis' weak excuses while ATT manages a net gain of 691,000 postpaid phone base vs. Verizon net loss 36,000 connections in 1Q. Interest rates are going up, not a surprise Matt. Rising inflation also not a surprise Matt.
Verizon's first-quarter profit fell 13%, and executives warned that higher consumer prices, heavier corporate expenses and rising interest costs would pressure earnings in the months ahead.
The company said Friday that this year’s overall wireless-service revenue—the heart of its business—would hit the low end of its previously issued 9%-to-10% growth target. Executives also said that per-share earnings, adjusted to omit certain nonrecurring costs, would arrive at the low end of their projected range between $5.40 and $5.55.
The gloomier forecast came after Verizon’s postpaid phone base—a key measure of reliable customers billed for monthly service—fell by 36,000 connections in the first quarter. Rival AT&T Inc. on Thursday reported a net gain of 691,000 such customers over the same period, though that figure omitted some lines disconnected when the carrier shut down its 3G wireless network in February.
Wireless companies have posted above-average subscriber growth for most of the past two years, raising questions among analysts and investors about the sustainability of network operators’ financial performance.
Verizon Chief Financial Officer Matt Ellis said Friday that rising interest rates could push up the company’s cash interest costs on outstanding debt by another $150 million to $200 million. He also said worker wages, contractor prices, electricity prices and fuel costs all factored into the carrier’s financial projections, though it is too soon to tell whether the company would pass on those higher costs to customers.
“We’re at inflation levels that we’ve not been at for 40 years and the wireless industry hasn’t existed for 40 years,” Mr. Ellis said in an interview. “But many other industries have obviously been here…and competitive industries can still pass on price increases.”
In the March quarter, net income attributable to Verizon fell to $4.58 billion from $5.25 billion a year earlier. The lower profit, down to $1.09 from $1.27 on a per-share basis, reflected lower revenue from wireless and broadband service and higher costs for wireless equipment such as smartphones.
Overall revenue climbed 2.1% to $33.55 billion. The recent result included sales from the November purchase of prepaid phone company TracFone but lacked revenue from online media assets such as AOL and Yahoo, which sold to private-equity firm Apollo Global Management Inc. around September.
Verizon remains the country’s largest mobile-service provider in terms of customers, with 91.4 million postpaid phone connections at the end of March. The company also served 23.8 million prepaid connections and continues to backstop mobile-phone service offered by large cable companies Charter Communications Inc. and Comcast Corp.
Finally looks like the street has learned that "5 Yeee" is Swedish for "bad investment".
And to think about all of the billions that they have wasted on this nonsense. Yet they sell off all of the towers and data centers and cede the dark fiber market to, once minor league, competitors.
These are the same geniuses that push esg and dei and undermine the American culture that built this company. VZ 1.0 - VZ 2.0 = VZ (1.0)
When a company has to play financial engineering games and products to smooth its cash flows in a business that is considered a staple is when you know that the company has reached peak value and the steady state. Look out below!
Any mention of how the vz brand credit card is doing? There must be at least 50 customers by now.
There is no one of any serious merit or who has any serious telecom chops in any serious leadership roles. McKinsey alums are the ones supposedly driving sales, revenue and strategy and marketing still being run by people who are better suited to selling underwear than technology. And the light in the loafers girly man depiction of employees might describe the denizens of the BR gymboree jam a lot better than the peeps that drive the trucks and keep the phones working. Until some manner of cohesive telecom management is put in place, the stock has nowhere to go but down. Watch them go after the dividend soon.
It has much further to fall.
Under Hans leadership, Verizon's 5G strategy has failed. Wall Street has spoken.
Verizon shares fell 6.2% to $51.60 in recent trading.
1rcl, we're gonna be union free? SWEET!
Union free yet we are actively working on an extension. Clown
Can we get a package please … this is ridiculous watching this company fail …centralized efforts with micromanaging mentality doesn’t work. Failure all around… money spent on useless innovation efforts that will not work without content ownership. Operational redundancy everywhere supporting the network. Useless processes and clueless managers trying to build a network at 10xs the cost in reality. Just a useless company. Ready for a Rif so I can move on ….
Dow falls nearly 1,000 points on rate hike fears and poor earnings from Verizon
Yes. Amazon Prime one day delivery. Your package is coming.
Can you give me a package NOW?
This is what happens when you have a woke bean counter for a CEO
Hans business as usual.