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Verizon Ups Guidance on Better-Than-Expected Q2 Results

Multinational telecommunications conglomerate Verizon (VZ) has reported better-than-expected second-quarter 2021 financial results. The New York-based company offers corporate networking solutions, video and data services, local and long-distance voice services, managed network services and network access.

The company reported adjusted earnings per share (EPS) of $1.37, up from $1.18 registered in the second quarter of 2020. The number surpassed the Street’s estimate of $1.29. Total consolidated operating revenues increased nearly 11% year-over-year to $33.8 billion, surpassing analysts’ expectations of $32.68 billion.

Consumer revenues grew 11.2% year-over-year to $23.5 billion; Business revenues climbed 3.7% to $7.8 billion; Wireless revenues surged 5.9% to $16.9 billion; and Media revenues rose almost 50% to $2.1 billion. (See Verizon stock chart on TipRanks)

The Chief Financial Officer at Verizon, Matt Ellis, said, “Our strong first-half performance and the momentum in our business gives us the confidence to raise our total wireless service revenue growth guidance between 3.5% and 4%, an update from prior guidance for 2021 total wireless service revenue growth of at least 3%. We are also raising our adjusted EPS guidance to the range of $5.25 to $5.35, an update from prior guidance for 2021 adjusted EPS of $5 to $5.15.”

On July 7, Tigress Financial analyst Ivan Feinseth reiterated a Buy rating on the stock with a price target of $67 (19.8% upside potential). In a research note to investors, the analyst said, “Verizon continues to benefit from the ongoing rollout of its transformative 5G network.”

Overall, the stock has a Hold consensus based on 3 Buys, 5 Holds and 1 Sell. The average Verizon price target of $60.71 implies 8.5% upside potential. Shares have lost almost 5% year-to-date.

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Richika Biyani
Based out of India, Richika is a seasoned writer with more than 15 years of experience in news and report writing. She also writes financial blogs. In the past, Richika has covered stocks trading on the NYSE, NASDAQ, and TSX. She is a postgraduate in finance and holds a Bachelor's degree in finance and accounting. Richika started her career by writing short news stories and she now writes stock analysis pieces for TipRanks. She has also held leadership positions in her previous organizations. Richika believes that a good writer has the superpower to easily explain even the most complex ideas and concepts in the simplest of words. She thinks reading helps a great deal in achieving this and so she reads anything and everything that she can find. Apart from being an avid reader, Richika enjoys cooking, swimming, and playing tennis. Follow me on LinkedIn