Verizon Postpaid Net Adds Decline, But Broadband Growth Is 'Close To The Best': Analyst
Portfolio Pulse from Priya Nigam
Verizon Communications Inc. (NYSE:VZ) shares fell over 6% following its Q2 results. Analysts from RBC Capital Markets and KeyBanc Capital Markets provided mixed reviews, with RBC maintaining a Sector Perform rating and KeyBanc maintaining an Overweight rating. Verizon's revenues and EBITDA were in line with expectations, while free cash flow exceeded consensus. The company's retail postpaid net adds declined slightly, but broadband growth remained strong.
July 23, 2024 | 3:55 pm
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NEUTRAL IMPACT
Verizon's Q2 results led to a 6% drop in share price. RBC Capital Markets reiterated a Sector Perform rating, while KeyBanc Capital Markets maintained an Overweight rating. Revenues and EBITDA were in line with expectations, and free cash flow exceeded consensus. Retail postpaid net adds declined slightly, but broadband growth remained strong.
The mixed analyst ratings and the in-line performance on key financial metrics suggest a neutral short-term impact. The decline in retail postpaid net adds is a slight negative, but strong broadband growth and better-than-expected free cash flow provide positive offsets.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100