In a strategic move driven by the success of its high-speed 5G network and targeted promotions, Verizon has raised its annual free cash flow (FCF) forecast, surpassing initial estimates. The telecom powerhouse now anticipates its FCF to exceed the previously projected $18 billion, marking an impressive increase of $1 billion. This revelation, according to Visible Alpha, showcases a remarkable surge in third-quarter FCF, which totaled $6.7 billion, surpassing analyst projections by over $1.3 billion.
This financial triumph has not gone unnoticed by the market, as Verizon’s shares experienced a notable surge of over 4% during premarket trading.
At the time of this publication, Verizon Communications Inc stock (VZ) has witnessed a surge.
Verizon Communications Inc
Current Price: $34.09
Change : +2.70
Change (%): (8.59%)
Volume: 42.6M
Source: Tomorrow Events Market Data
Industry experts attribute this success to Verizon’s strategic focus on higher-tiered unlimited plans and well-timed price adjustments. Notably, the addition of 100,000 net monthly-bill-paying wireless phone subscribers in the third quarter far outpaced analyst predictions of 63,600, as reported by Factset.
The aggressive pursuit of Verizon of a distinctive edge in the fiercely competitive U.S. market is evidenced by an array of promotional offerings and strategically timed trade-in deals, synchronized with the much-anticipated launch of the new iPhone 15. This calculated approach has propelled the company ahead of its competitors.
Last week, AT&T also raised its annual FCF forecast, signaling a trend of positive growth within the industry. The stage is set for T-Mobile US to unveil its results on Wednesday, adding further intrigue to the evolving landscape of the telecom market.
Despite this robust financial performance, Verizon’s third-quarter revenue stood at $33.3 billion, a figure in line with analyst predictions of $33.25 billion, as reported by LSEG data. This consistency in revenue demonstrates Verizon’s strategic focus on sustainable growth and market stability.
In conclusion, this robust increase in free cash flow solidifies the position of Verizon as a leader in the telecommunications sector, poised for continued success in the coming quarters.
Source: Reuters
Chart from Trading View
