Shares of Verizon (NYSE:VZ) are trending lower in the pre-market session today after its guidance disappointed investors. The company’s fourth-quarter revenue increased 3.5% year-over-year to $35.3 billion, outpacing estimates by $160 million.
EPS at $1.19 came in line with expectations. The company saw 217,000 net postpaid phone additions and 1.4 million net retail postpaid additions during the quarter. This was its best quarterly performance in about seven years. Additionally, net broadband additions at 416,000 were the best in more than a decade.
Nonetheless, the company’s expectations for 2023 dampened investor sentiment. It expects total wireless service revenue to increase between 2.5% and 4.5%. Adjusted EBITDA is seen landing between $47 billion and $48.5 billion. This is expected to translate into EPS between $4.55 and $4.85.
Overall, Wall Street has a consensus price target of $45.83 on Verizon, implying a 15.64% upside potential, as indicated by the graphic above.
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