Verizon Communications Inc. (NYSE: VZ) shares have weakened from their recent highs above $59 registered in May 2021, and the current price stands around $55. Verizon Communications continues to expand its business, and at the current stock price, this company is fairly valued.
Fundamental analysis: Verizon continues to make improvements in all aspects
Verizon Communications is an American multinational telecommunication company that generates steady revenue and a healthy profit margin. Verizon reported its second-quarter results this week; total revenue has increased by 11.2% Y/Y to $33.8 billion, while GAAP EPS for the same period was $1.40 (beats by $0.11).
It is important to say that adjusted EBITDA (non-GAAP) was $12.2 billion in the second quarter, while the net income increased by 23% from second-quarter 2020 and reached $5.8 billion. Verizon raised its guidance for the 2021 fiscal year, and it reported that it expects wireless service revenue to grow between 3.5% to 4%, while the EPS should be in the range of $5.25 to $5.35.
“In summary, our strategy is working, and it’s more relevant than ever, driving value for our investors and to our customers and society, as they embrace new ways of living and working. We have great momentum on all five vector growth, delivering on profit growth with alignment for long-term growth targets,” said Hans Vestberg, Chairman and CEO.
CEO Hans Vestberg said that Verizon continues to make improvements in all aspects; the company strengthened its strategic focus with the divestment of Verizon Media Group and laid out a long-term financial goal with a focus on growth. Verizon launched the first commercially available private 5G network solution in the U.S and continues with expanding 5G Home Services, which is now available across 47 markets.
