Verizon Reports Mixed Q3 Results; Lifts FY21 EPS Outlook - Verizon Communications (NYSE:VZ)

Verizon Communications Inc VZ reported third-quarter FY21 sales growth of 4.3% year-on-year, to $32.92 billion, missing the analyst consensus of $33.2 billion.
Total Verizon Consumer revenue grew 7.3% Y/Y to $23.3 billion, driven by strong demand for connectivity and products, while consumer wireless service revenues rose 4% Y/Y to $14 billion.
Consumer wireless retail postpaid churn was 0.84% in Q3, and wireless retail postpaid phone churn was 0.67%. The 423,000 retail postpaid net additions include 267,000 phone net additions.
Consumer segment EBITDA margin contracted 240 bps to 45%, and business segment EBITDA margin decreased 40 bps to 24.8%.
Adjusted EBITDA of $12.3 billion, increased 3.3% Y/Y.
Adjusted EPS of $1.41 beat the analyst consensus of $1.36.
Cash flow from operating activities totaled $31.2 billion year-to-date, and the free cash flow was $17.3 billion.
"Our disciplined strategy execution demonstrated growth in 5G adoption, broadband subscribers and business applications," said CEO Hans Vestberg.
Outlook: Verizon raised FY21 adjusted EPS guidance to $5.35 - $5.40 (prior guidance $5.25 - $5.35) versus the consensus of $5.31.
The company expects total wireless service revenue growth of around 4%, landing at the higher end of the prior guidance of 3.5% -4%.
Price action: VZ shares are trading higher by 0.88% at $52.81 in premarket on the last check Wednesday.