Why Verizon stock is trading lower today
Verizon Communications (NYSE: VZ) shares are trading lower after the company reported second-quarter financial results, in which its revenue results were worse than expected.
What Happened: Before the market opened on Monday, Verizon reported its financial metrics for the second quarter of 2024.
| Reported | Estimate | YoY | |
| Total Operating Revenue | $32.8 billion | $33.063 billion | +0.6% from Q2 2023 |
| Adjusted EPS | $1.15 | inline | $1.21 in Q2 2023 |
Verizon’s second quarter 2024 adjusted EPS results were inline with analyst estimates and were down from $1.21 during the same period last year.
The company’s second quarter 2024 total operating revenue results were below the consensus estimate, but higher 0.6% from the same period last year. Verizon attributed the growth in revenue to an increase in service and other revenue, which was offset by a decrease in wireless equipment revenue due to lower upgrade volumes.
Verizon’s revenue miss is the reason for the stock moving lower today, as the company didn’t perform as well as Wall Street expected.
“The sequential and year over year improvements in the second quarter were a reflection of operational excellence and the moves we made to bring choice, value and control to our customers’ lives,” said Verizon Chairman and CEO Hans Vestberg.
“The sequential and year over year improvements in the second quarter were a reflection of operational excellence and the moves we made to bring choice, value and control to our customers’ lives.”
– Verizon Chairman and CEO Hans Vestberg
Despite the revenue miss, Verizon said it remains on track to achieve its full-year 2024 financial guidance. The company expects 2024 total wireless service revenue growth of 2 to 3.5 percent and adjusted EPS of $4.50 to $4.70.
Verizon was trading 5.92% lower to $39.16 at the time of writing. The stock has a 52-week high of $43.42 and a 52-week low of $30.14.
