In the wake of a robust third quarter, Verizon Communications (NYSE:VZ), a prominent telecom titan, has elevated its free-cash-flow projection for the year. The announcement came after an 8.5% surge in the company's share price Tuesday morning.
The upward revision follows the early release of Apple Inc (NASDAQ:AAPL).’s iPhone 15, which gave Verizon a significant boost. In May, the telecom giant revised its plans to enable customers to personalize their add-on services, a move that appears to have paid off.
Despite a slight dip in net income to $4.9 billion from last year's $5 billion, Verizon's adjusted earnings exceeded expectations at $1.22 per share, outpacing the FactSet consensus of $1.18 per share. The company's total revenue slipped to $33.3 billion from $34.2 billion but matched FactSet's prediction.
Both the consumer sector and business unit made substantial contributions to Verizon's revenue, bringing in $25.3 billion and $7.5 billion respectively. In the third quarter, Verizon added 100,000 postpaid phone subscribers and managed to maintain a low churn rate of 0.9%.
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