Please ensure Javascript is enabled for purposes of website accessibility

Verizon Sinks Despite Q1 Beats

By Eric Volkman - Apr 21, 2021 at 4:39PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The company reported growth where it counts, but investors weren't overly impressed.

On Wednesday morning, Verizon Communications (VZ 1.75%) released its latest set of quarterly results, which were met with a shrug despite some encouraging growth numbers.

For its first quarter of fiscal 2021, the telecom giant managed to increase its revenue by 4% year over year to $32.9 billion. Generally accepted accounting principles (GAAP) net income also headed north, advancing by 25% to $5.38 billion. On a non-GAAP (adjusted) basis, the bottom line profit was $1.31 per share, up from the year-ago quarter's $1.26.

Dapper man with full beard using smartphone.

Image source: Getty Images.

Both headline numbers edged past analyst estimates. On average, the prognosticators following Verizon's stock were expecting $32.47 billion on the top line and a per-share adjusted net profit of $1.29.

Verizon eagerly pointed out that it produced top-line growth in all three of its business segments: consumer, business, and media. The largest by far -- consumer -- enjoyed nearly 5% growth to $22.8 billion, which the company said was due largely to new phone activations. The business segment inched up by just over 1%, while media -- very much the smallest of the trio -- grew its take by 10% to $1.9 billion.

The company proffered guidance for the entirety of 2021. It believes it will post an adjusted, per-share net profit of $5.00 to $5.15, with service and other revenue growth coming in at 2%. Currently in the midst of rolling out its 5G network, Verizon anticipates its capital spending will total $19.5 billion to $21.5 billion for the year.

Despite the plus signs next to the growth numbers, investors had a tepid reaction to the results. In mid-afternoon trading Wednesday, Verizon stock was slumping by nearly 0.4% against the 0.7% gain of the S&P 500 index.


Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Verizon Communications Inc. Stock Quote
Verizon Communications Inc.
$51.64 (1.75%) $0.89

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/04/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.