Verizon reported Q3 earnings that beat estimates with a profit of $1.21 per share and revenue of $33.8 billion, despite losing some wireless subscribers and missing revenue targets. The company announced a new CEO, Dan Schulman, who promises significant changes to improve performance. Verizon's stock rose slightly after the report, but the stock remains below its recent highs amid competitive pressures and strategic shifts, including a $20 billion acquisition of Frontier Communications.
AT&T reported third-quarter earnings and revenue that exceeded expectations, with wireless subscriber additions surpassing estimates. The company's free cash flow also beat Wall Street targets, leading to a rise in its stock. Despite a decrease in postpaid wireless phone customers compared to the previous year, AT&T remains optimistic about its full-year free cash flow. Verizon Communications and T-Mobile US are set to report their Q3 results soon.
Verizon reported better-than-expected quarterly profits due to lower costs and a surprising increase in wireless subscribers, driven by efforts to expand its enterprise customer base and 5G network. The company also announced that it is conducting tests on sites identified in a recent Wall Street Journal report on abandoned lead cables. Verizon's second-quarter results showed signs of recovery after a challenging 2022, with the addition of 8,000 net monthly bill-paying wireless phone subscribers. However, total revenue fell 3.5% to $32.6 billion, missing analysts' estimates.
AT&T is expected to have recorded its fastest rate of wireless subscriber growth in over a decade in Q1 2023, with wireless subscriptions likely rising 12.5% to 221.14 million. Net income is projected to be $4.3 billion, down 4% YoY, while operating revenues likely fell 20.5% YoY to $30.3 billion due to the WarnerMedia spin-off. Investors will be looking at the effects of cost-cutting measures as well as top-line growth, especially in AT&T's wireless unit, which accounts for more than two-thirds of total revenue.
