Verizon’s Q3 results surpass expectations, boosts 2023 free cash flow guidance By Investing.com

<p> <br />
</p>
<div>
<div>
<img decoding="async" alt="Earnings call: Verizon's Q3 results surpass expectations, boosts 2023 free cash flow guidance" id="carouselImage" src="https://i-invdn-com.investing.com/news/moved_LYNXMPEHAL1CO_L.jpg" style="visibility:hidden" /><br />
<span>© Reuters </span><br />
<i class="imgGrad"/>
</div>
<p><span itemscope="" itemtype="http://schema.org/Corporation"><span itemprop="name"> Verizon Communications </span></span> Inc (NYSE:). reported strong third-quarter results, surpassing its full-year target for 2022 with a year-to-date free cash flow of $14.6 billion. The company’s Q3 results were buoyed by growth in wireless service revenue, EBITDA, and free cash flow. Verizon also raised its 2023 free cash flow guidance to over $18 billion.</p>
<p>Key takeaways from the call:</p>
<ul>
<li>Wireless service revenue increased by 3.9% YoY, contributing to adjusted EBITDA of $12.2 billion for the quarter.</li>
<li>Verizon reported growth in consumer mobility, broadband, and private networks.</li>
<li>The company’s net unsecured debt was $122.2 billion, down $7.1 billion YoY, and its net unsecured debt to consolidated adjusted EBITDA ratio improved to 2.6 times.</li>
<li>Verizon plans to invest $17 billion to $17.5 billion in capital expenditures in 2024.</li>
<li>The company is on track to deliver cost-cutting targets of $2 billion to $3 billion by 2025, with $200 million to $300 million expected to be delivered in 2023.</li>
</ul>
<p>Verizon’s Q3 results were also characterized by strong performance in postpaid phone gross adds and lower postpaid upgrades. The company’s Consumer Average Revenue Per Account (ARPA) increased sequentially by 1.2% and YoY by 4.5%. Verizon Business also delivered strong results, with 151,000 phone net adds.</p>
<p>Despite a YoY decrease of 2.6% in consolidated revenue to $33.3 billion, primarily due to lower wireless equipment revenue, total wireless service revenue rose 2.9% YoY to $19.3 billion. Cash flow from operating activities for the quarter was $10.8 billion, bringing the year-to-date total to $28.8 billion.</p>
<p>During the earnings call, Verizon executives expressed confidence in meeting its full-year financial targets and positioning itself for deleveraging opportunities in 2024. They also discussed the company’s plan to reduce debt and generate strong free cash flow in 2024.</p>
<p>Verizon’s plans for the future also include a continued focus on improving volumes and financials, expansion of fixed wireless access, and working towards improving the prepaid business. The company also plans to integrate AI into its network and customer care.</p>
<p>CEO Hans Vestberg and CFO Tony Skiadas expressed satisfaction with the team’s performance and the strategic choices made by the leadership team. Vestberg also highlighted the company’s progress in private networks, stating that they are moving from proof-of-concept to commercial deals and have a strong product ecosystem to serve different industries.</p>
<p>Verizon’s commitment to social responsibility was demonstrated through its response to the humanitarian crisis in Israel and Palestine. The company pledged a $2 million donation to relief efforts and announced the waiver of international long-distance charges for calls and texts to the region.</p>
<p><em>This article was generated with the support of AI and reviewed by an editor. For more information see our T&amp;C.</em></p>
</div>
<p><br />
<br /><a href="https://www.investing.com/news/stock-market-news/earnings-call-verizons-q3-results-surpass-expectations-boosts-2023-free-cash-flow-guidance-93CH-3211250">Source link </a></p><p>The post <a href="https://forextraderhub.com/verizons-q3-results-surpass-expectations-boosts-2023-free-cash-flow-guidance-by-investing-com.html">Verizon’s Q3 results surpass expectations, boosts 2023 free cash flow guidance By Investing.com</a> first appeared on <a href="https://forextraderhub.com">Forex Trader Hub</a>.</p>