Market Overview - U.S. stocks exhibited mixed performance, with the Nasdaq Composite gaining over 100 points after the Federal Reserve lowered rates by 25 basis points to a range of 3.75%-4.00% for the second consecutive meeting [2] - The Dow Jones closed lower by approximately 74 points at 47,632.00, while the S&P 500 slipped 0.01% to 6,890.59, and the Nasdaq Composite rose 0.55% to 23,958.47 [4] Company Performance - Caterpillar Inc. (NYSE:CAT) shares increased around 12% following better-than-expected third-quarter financial results [3] - Boeing Co. (NYSE:BA) shares fell approximately 4% after reporting a wider loss for the third quarter of 2025 [3] - Verizon Communications (NYSE:VZ) reported mixed third-quarter results and reaffirmed its 2025 guidance [3] Economic Indicators - U.S. pending home sales remained flat in September, contrasting with market expectations of a 1.6% increase [3] Sector Performance - Most sectors within the S&P 500 closed negatively, with real estate, consumer staples, and materials stocks experiencing the largest losses [4] - Conversely, communication services and information technology stocks closed higher, defying the overall market trend [4] Investor Sentiment - The CNN Money Fear and Greed Index recorded a reading of 42.3, indicating a continued presence in the "Fear" zone, up from a previous reading of 39.3 [6]

Core Viewpoint - Morgan Stanley has lowered Verizon's target price from $49 to $47 [1] Company Summary - The adjustment in target price reflects a reassessment of Verizon's market position and potential growth [1]

Core Insights - The company, Quad 7 Capital, is known for its investment strategy called BAD BEAT Investing, which has been operational for nearly 12 years and emphasizes both long and short trades [1] - The team consists of 7 analysts with diverse expertise in various fields, including business, policy, economics, and game theory [1] - The investment approach focuses on short- and medium-term investments, income generation, special situations, and momentum trades [1] Group 1 - Quad 7 Capital has a proven track record, highlighted by a significant market call in February 2020 to sell everything and go short, maintaining an average position of 95% long and 5% short since May 2020 [1] - The company aims to educate investors on becoming proficient traders through a comprehensive playbook, providing in-depth research with clear entry and exit targets [1] Group 2 - Benefits of BAD BEAT Investing include understanding market dynamics, executing well-researched trade ideas weekly, access to multiple chat rooms, and receiving daily analyst upgrade/downgrade summaries [2] - The program also offers education on basic options trading and provides extensive trading tools to enhance investor capabilities [2]

Core Viewpoint - Verizon Communications reported mixed earnings for Q3, beating earnings expectations but missing revenue forecasts, leading to a 2.1% increase in stock price [1][3]. Financial Performance - Analysts had forecasted earnings of $1.19 per share on $24.3 billion in revenue, while Verizon reported earnings of $1.21 per share but only $33.8 billion in revenue [1][3]. - Year-over-year sales growth was modest at 1.5%, but GAAP profits surged 50% to $1.17 per share, with free cash flow increasing by 9% to $15.8 billion for the first nine months of the year [3][4]. Business Segments - The growth in earnings was attributed to the broadband business, which added 306,000 net customers, while the wireless phone segment saw a slight decline with a net loss of 7,000 postpaid customers, offset by a gain of 47,000 prepaid customers [4]. Future Outlook - Verizon anticipates total wireless revenue growth of 2% to 2.8% by year-end, with free cash flow projected to reach between $19.5 billion and $20.5 billion [5]. - The stock is valued at a price-to-free-cash-flow ratio of approximately 8.5, which is considered reasonable given the 7% dividend yield and the 9% growth in free cash flow [5][6]. Debt Considerations - Verizon carries a significant debt load of $170 billion, which is roughly equal to its market capitalization, leading to a view that the stock may be fairly valued rather than obviously cheap [6].

Market Overview - The Dow Jones Industrial Average increased by 110.41 points (0.2314%) on October 29th, 2025, driven by a combination of factors including a 25-basis-point interest rate cut by the Federal Reserve, strong corporate earnings, and optimism in the AI sector [1] - This marks the second consecutive rate reduction by the Fed, lowering the target range to 3.75%-4%, with investors looking for further monetary policy signals [1] - Renewed hopes for progress in U.S.-China trade relations also contributed positively, particularly benefiting technology stocks [1] Company Performance - Caterpillar (CAT) was the biggest gainer in the Dow, surging by 12.22% after reporting better-than-expected third-quarter profit and revenue [2] - Nvidia (NVDA) rose by 3.29%, becoming the first company to reach a $5 trillion market capitalization, driven by strong AI chip sales expectations and strategic partnerships [2] - Other notable gainers included Verizon (VZ) up 1.95%, Chevron (CVX) rising 0.99%, and Apple (AAPL) with a 0.52% increase [2] Declining Stocks - Boeing (BA) was the largest loser, falling by 4.02% due to reports of a larger quarterly loss [3] - UnitedHealth (UNH) decreased by 3.01%, Coca-Cola (KO) was down 2.63%, Nike (NKE) fell by 1.97%, and Visa (V) saw a 1.59% decline as investors awaited earnings reports from major tech companies [3]

Financial Performance - Verizon's Consumer segment reported operating revenues of $26.1 billion for Q3 2025, a 2.9% increase from $25.4 billion in Q3 2024, and $78.4 billion for the first nine months of 2025, up 4.0% from $75.3 billion in the same period of 2024[171]. - The Business segment's operating revenues decreased to $7.1 billion in Q3 2025, down 2.8% from $7.4 billion in Q3 2024, and $21.7 billion for the first nine months of 2025, a decline of 1.5% from $22.0 billion in the same period of 2024[173]. - Consolidated operating revenues for Q3 2025 reached $33.8 billion, a 1.5% increase from $33.3 billion in Q3 2024, and $101.8 billion for the first nine months of 2025, up 2.7% from $99.1 billion in the same period of 2024[185]. - Consolidated Net Income for the three months ended September 30, 2025, was $5.056 billion, an increase of 48.3% compared to $3.411 billion in 2024[207]. - Consolidated EBITDA for the nine months ended September 30, 2025, was $38.374 billion, up 10.5% from $34.802 billion in 2024[207]. - Total operating revenues for the three months ended September 30, 2025, were $26,105 million, an increase of 2.9% compared to $25,360 million in the same period of 2024[237]. - Total operating revenues for the nine months ended September 30, 2025, were $78,371 million, an increase of 4.0% from $75,344 million in the same period of 2024[237]. Expenses and Costs - The cost of services decreased by 4.6% to $6.9 billion in Q3 2025 compared to $7.2 billion in Q3 2024, and for the first nine months, it decreased by 1.8% to $20.7 billion from $21.1 billion[186]. - Cost of wireless equipment increased by 7.2% to $6.5 billion in Q3 2025, driven by a shift to higher-priced equipment, and for the first nine months, it rose by 11.9% to $19.6 billion from $17.5 billion[186]. - Total operating expenses increased by $685 million (3.9%) and $2.876 billion (5.5%) for the three and nine months ended September 30, 2025, respectively[243]. - Total Operating Expenses decreased by $281 million (4.1%) and $799 million (3.9%) for the three and nine months ended September 30, 2025, respectively[261]. Capital Expenditures and Investments - Capital expenditures for the nine months ended September 30, 2025, totaled $12.3 billion, with expectations for total capital expenditures in 2025 to be between $17.5 billion and $18.5 billion[176]. - Capital expenditures for the nine months ended September 30, 2025, were $12.3 billion, an increase of $244 million compared to $12.0 billion in the same period of 2024, primarily due to Fios footprint expansion and C-Band spectrum deployment[284]. - Verizon's strategy includes significant capital investments in wireless spectrum and advanced information technology systems to drive future growth[156]. Tax and Income - The One Big Beautiful Bill Act (OBBBA) is expected to decrease Verizon's 2025 cash income tax liability by $2.0 billion to $2.3 billion by December 31, 2025[180]. - Provision for Income Taxes increased by 65.1% to $1.471 billion for the three months ended September 30, 2025, compared to $891 million in 2024[200]. - Effective income tax rate increased to 22.5% for the three months ended September 30, 2025, compared to 20.7% in 2024[200]. Wireless and Broadband Services - Wireless retail connections increased due to a higher volume of wireless devices sold, with a notable 13% increase in upgrades[196]. - Wireless service revenue for the same period was $17,441 million, reflecting a 2.4% increase from $17,036 million year-over-year[237]. - Total broadband connections increased by 831, reaching 10,593, representing an 8.5% growth compared to the previous year[237]. - FWA broadband connections saw a significant increase of 700, totaling 3,198, which is a 28.0% rise year-over-year[237]. - Wireless retail postpaid accounts decreased by 366, totaling 32,353, marking a decline of 1.1%[237]. - Wireless retail postpaid ARPA increased to $147.91, up 2.0% from $144.94 in the previous year[237]. - The churn rate for wireless retail was stable at 1.61% for both the current and previous periods[237]. - Fios internet connections increased by 175, totaling 7,263, which is a 2.5% growth year-over-year[237]. - Wireless retail core prepaid connections increased by 282, reaching 19,062, a growth of 1.5% compared to the previous year[237]. Mergers and Acquisitions - Verizon entered into a merger agreement to acquire Frontier Communications for $38.50 per share in cash, with shareholder approval received in November 2024[316]. - The merger is subject to remaining regulatory approvals and customary closing conditions, with potential termination fees of $320 million for Frontier and $590 million for Verizon under specified circumstances[316]. - In October 2025, Verizon announced plans to acquire Starry Group Holdings, a fixed wireless broadband provider, pending FCC approval[317]. - The merger with Frontier is expected to provide cost savings and synergies, although risks remain regarding the successful completion of the transaction[324]. Cash Flow and Financing - Cash Flows Provided By Operating Activities increased by $1.5 billion during the nine months ended September 30, 2025, compared to the similar period in 2024[282]. - The company’s cash and cash equivalents increased by $3.5 billion during the nine months ended September 30, 2025, compared to $1.9 billion in the same period in 2024[279]. - Net cash used in financing activities for the nine months ended September 30, 2025, was $12.8 billion, compared to $11.5 billion in 2024, driven by cash dividends of $8.6 billion and repayments of long-term borrowings totaling $7.5 billion[286][287]. - Free cash flow for the nine months ended September 30, 2025, was $15.76 billion, up from $14.46 billion in 2024, reflecting an increase in operating cash flows[301]. - Cash and cash equivalents increased by $3.5 billion to $7.7 billion as of September 30, 2025, compared to December 31, 2024[298]. Regulatory and Compliance - The company continues to monitor the impacts of U.S. government tariffs and changes in federal workforce initiatives on its business operations[181][182]. - Verizon is involved in various litigation and regulatory proceedings but does not anticipate any material legal proceedings requiring disclosure[325]. - The company faces risks including competition, technology developments, and economic conditions that could materially affect future results[319]. - The company is focused on addressing changes in consumer demand and technological advancements, including artificial intelligence[319]. Operational Efficiency - The company recorded pre-tax amortization expense of $189 million and $571 million related to acquired intangible assets for the three and nine months ended September 30, 2025, respectively[272]. - The company recorded charges of $52 million related to transaction and integration expenses associated with the pending acquisition of Frontier during both the three and nine months ended September 30, 2025[273]. - The company is implementing a new global ERP system to enhance financial information flow and data analysis, expected to continue over the next few years[321]. - As of September 30, 2025, the effectiveness of the company's disclosure controls and procedures was confirmed by the CEO and CFO[320]. - The company has not experienced any material changes in internal control over financial reporting during the third quarter of 2025[323].

Financial Performance - Verizon Communications reported revenue of $33.82 billion for the quarter ended September 2025, reflecting a year-over-year increase of 1.5% [1] - The earnings per share (EPS) was $1.21, up from $1.19 in the same quarter last year, indicating a positive change [1] - The reported revenue was below the Zacks Consensus Estimate of $34.18 billion by 1.04%, while the EPS exceeded the consensus estimate of $1.19 by 1.68% [1] Key Metrics - Verizon's stock has returned -10.5% over the past month, contrasting with the Zacks S&P 500 composite's increase of +3.8% [3] - The company currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [3] Subscriber and Revenue Breakdown - Consumer Wireline net subscriber additions for broadband were 47 thousand, surpassing the average estimate of 36.36 thousand [4] - Fios video net subscriber losses were 70 thousand, slightly worse than the average estimate of -67.91 thousand [4] - Business Fios Internet connections were reported at 411 thousand, aligning closely with the average estimate of 411.53 thousand [4] - Business operating revenues totaled $7.14 billion, below the average estimate of $7.28 billion, representing a year-over-year decline of 2.8% [4] - Consumer operating revenues were reported at $26.11 billion, slightly below the average estimate of $26.22 billion, reflecting a year-over-year increase of 2.9% [4]

Core Insights - Verizon Communications Inc. reported strong third-quarter 2025 results with wireless service revenues of $21 billion, reflecting a year-over-year increase of 2.1% [1][4] - Adjusted earnings surpassed the Zacks Consensus Estimate, while total revenues fell short of expectations [1][4] Financial Performance - Net income for the quarter was $5.06 billion, or $1.17 per share, compared to $3.41 billion, or 78 cents per share, in the same quarter last year, driven by top-line growth and reduced operating expenses [3] - Total operating revenues increased by 1.5% to $33.82 billion, but missed the consensus estimate of $34.18 billion [4] - Adjusted earnings were $1.21 per share, slightly above the previous year's $1.19 per share [3] Segment Results - Consumer segment revenues rose by 2.9% year over year to $26.1 billion, exceeding estimates [5] - Business segment revenues declined by 2.8% to $7.14 billion due to lower wholesale and enterprise revenues, falling short of estimates [8] Subscriber Growth - Fixed wireless access net additions reached 261,000, bringing the total subscriber base to nearly 5.4 million, with a target of 8 to 9 million by 2028 [2] - Wireless retail postpaid churn was recorded at 1.12%, while retail postpaid phone churn was 0.91% [6] Operating Metrics - Operating income improved by 36.8% to $8.1 billion, with total operating expenses down by 6.2% to $25.72 billion [11] - Consolidated adjusted EBITDA increased to $12.77 billion, reflecting growth in wireless service revenue [11] Cash Flow and Guidance - Verizon generated $28 billion in net cash from operating activities for the first nine months of 2025, compared to $26.48 billion in the previous year [12] - For 2025, the company anticipates wireless service revenue growth of 2%-2.8% and adjusted EBITDA growth of 2.5%-3.5% [13]

About this content About Sean Mason Sean Mason is a Senior Journalist at Proactive, having researched and written about Canadian and US equities for 20 years. Sean graduated from the University of Toronto with a BA in history and economics and has also passed the Canadian Securities Course. He previously worked at Investors Digest of Canada, Stockhouse, and SmallCapPower.com. Read more About the publisher Proactive financial news and online broadcast teams provide fast, accessible, informative and action ...

Market Overview - U.S. stocks traded higher, with the Dow Jones index gaining approximately 250 points, up 0.55% to 47,970.89, NASDAQ rose 0.65% to 23,982.73, and S&P 500 increased by 0.33% to 6,913.53 [1] - Asian markets closed higher, with Japan's Nikkei 225 surging 2.17%, China's Shanghai Composite gaining 0.70%, and India's BSE Sensex up 0.44% [6] - European shares were mixed, with the eurozone's STOXX 600 gaining 0.1%, while Germany's DAX 40 fell 0.3% and France's CAC 40 fell 0.2% [5] Company Financials - Verizon Communications reported mixed third-quarter results, with revenue growth of 1.5% year-over-year to $33.8 billion, missing analyst estimates of $34.3 billion, while adjusted EPS of $1.21 exceeded the consensus estimate of $1.19 [2] Commodity Prices - In commodity news, oil traded up 0.3% to $60.31, gold increased by 1% to $4,022.90, silver rose 1.6% to $48.075, and copper was up 1% to $5.2205 [4] Stock Movements - Cambium Networks Corp shares surged 209% to $1.91 after announcing integration with Starlink satellite Internet services [8] - Purple Biotech Ltd shares increased 118% to $1.27 following the achievement of a commercially viable yield for IM1240 [8] - Advent Technologies Holdings Inc shares dropped 51% to $1.33, while Stride Inc shares fell 47% to $82.04 due to second-quarter sales guidance below estimates [8] - Varonis Systems Inc shares fell 44% to $35.14 after reporting third-quarter revenue below estimates [8] Economic Indicators - U.S. mortgage application volume jumped by 7.1% from the previous week for the period ending October 17 [7]