- Total revenue fell 3.5% to $32.6m, missing market forecasts
- Underlying EBITDA rose 0.8% to $12.0bn, operating income fell 4.4% to $7.2bn
- For 2023, underlying EBITDA is expected between $47.0-$48.5bn
“Who knew lead could cause such a stir? Verizon Communications Inc. (NYSE:VZ)’s shares were down about 12% back when the news broke that telecom giants in the US might need to fork out billions to replace environmentally damaging lead-wrapped cables.
Some value has been clawed back, but It’s hard to say how much this could end up costing. If it turns into all-out litigation, then it could get ugly. One thing’s for sure, it’ll remain a cloud over the industry until someone can provide credible evidence of the financial or environmental impact.
Yet Another Miss For Verizon
For Verizon, it’s a distraction it could do without. This marks the second quarter in a row that it’s missed revenue expectations, with management pointing to lower phone upgrade activity – likely a result of consumers holding off on unnecessary extra costs.
But there was a glimmer of light from postpaid wireless phone subscribers, which posted a surprise gain of 8,000 compared to estimates that suggested it would fall by around 11,000. Debt remains the biggest red hearing, with the mammoth pile requiring some hefty cash requirements – the dividend looks vulnerable.”
Article by Matt Britzman, equity analyst at Hargreaves Lansdown
