Verizon (VZ 5.11%) stock closed out Monday's trading in the green. The telecom company's share price gained 1.5% in the daily session and had been up as much as 4.5% earlier in trading. The S&P 500 ended the day up 0.1%, and the Nasdaq Composite climbed 0.2% in the session.
Verizon published its first-quarter results before the market opened this morning and reported mixed sales and earnings for the period. With the modest gain recorded in today's session, the stock is now up roughly 16% year to date.
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Verizon beat Q1 earnings despite a sales miss
Verizon posted a non-GAAP (adjusted) profit of $1.28 per share on revenue of roughly $34.4 billion in the first quarter. The company's adjusted profit per share beat the average analyst forecast by $0.07, but sales fell roughly $490 million short of the average Wall Street analyst target for the period. Sales growth of 2.7% year over year in the quarter fell short of analyst's estimate, but stronger-than-expected margins paved the way for an earnings beat that helped support gains for the stock.
NYSE: VZ
Key Data Points
What's next for Verizon?
With its Q1 report, Verizon raised its full-year target for adjusted earnings-per-share growth to between 5% and 6%. Previously, the company had targeted annual growth between 4% and 5% for adjusted earnings per share.
Verizon's ability to deliver better-than-expected earnings growth despite softer-than-expected sales in the first quarter was a bullish indicator, and management's decision to raise guidance suggests that positive profit trends will continue. The company also said that it expected postpaid phone net additions for the year to be in the upper half of its previous guidance for adds between 750,000 and 1 million -- supporting a solid performance outlook for the remainder of the year.
