Core Insights - The article discusses the importance of conducting thorough research before making investment decisions, emphasizing that past performance does not guarantee future results [2][3] Company and Industry Analysis - The article highlights that analysts may have no current positions in the stocks mentioned, indicating a level of objectivity in the analysis [1] - It notes that the information provided is for informational purposes only and should not be considered as a solicitation to buy or sell securities [2] - The article stresses the necessity for investors to reach their own conclusions or consult a financial advisor before making investment decisions [2][3]

Verizon Unplugged with Mel Robbins WHEN: Wednesday, August 6, 2025 @ 6:00 PM ET | Doors open at 5:30 PM ET WHERE: The Times Center 242 W 41st St, New York, NY 10036 IMAGE ASSETS: Linked here. TICKETS: Tickets are free and will go live on Monday 7/28 at 10:00AM EST on VerizonUnplugged.com — space is limited! CONTACT: Elizabeth Angley Elizabeth.Angley@verizon.com NEW YORK, July 28, 2025 (GLOBE NEWSWIRE) -- WHAT: Verizon is teaming up with award-winning podcast host, NYT #1 Best-selling author Mel Robbins to s ...

Core Insights - Verizon reported better-than-expected Q2 earnings, leading to a rise in its stock price despite challenging macroeconomic conditions [1] Financial Performance - The company is taking steps to execute and drive efficiencies in its business operations [1]

Core Viewpoint - The article discusses the potential upside for Verizon (VZ) stock, particularly in the context of the Federal Reserve's decision to cut interest rates, which could positively impact the stock's performance [1]. Group 1: Company Analysis - The author previously suggested that Verizon stock had upside potential, especially if the Federal Reserve were to cut rates [1]. - The article indicates that the Federal Reserve did indeed cut rates later, which may have implications for Verizon's stock performance [1]. Group 2: Investment Strategy - The author emphasizes a long-term investment strategy focused on strategic buying opportunities, particularly in dividend and value stocks [1]. - This investment approach has led to a high rating on Tipranks.com and a significant following on Seeking Alpha, indicating a level of credibility and expertise in the investment community [1].

Core Insights - Investors are focusing on dividend stocks for regular income amid market volatility [1][2] Group 1: EOG Resources - EOG Resources announced the acquisition of Encino Acquisition Partners for $5.6 billion, leading to a 5% increase in its quarterly dividend to $1.02 per share, with an annualized dividend of $4.08, resulting in a dividend yield of 3.4% [3][4] - Analyst Gabriele Sorbara maintains a buy rating on EOG with a price target of $155, expecting strong quarterly results and significant expansion in the Utica shale due to the acquisition [4][5] - EOG is projected to return at least 70% of its free cash flow to shareholders annually, with an estimated $976.6 million in capital returns, representing 107.7% of free cash flow and a 6.0% capital returns yield [6] Group 2: Williams Companies - Williams Companies offers a quarterly dividend of $0.50 per share, with an annualized dividend of $2.00, reflecting a yield of 3.5% [8] - Analyst Elvira Scotto reaffirmed a buy rating on WMB with a price target of $63, while adjusting Q2 projections due to seasonal factors and commodity price changes [9][11] - Scotto is optimistic about WMB's long-term growth potential, supported by a robust backlog of projects and expected benefits from additional projects and pipeline revivals [12][13] Group 3: Verizon Communications - Verizon Communications reported solid Q2 results, raising its annual profit guidance and announcing a quarterly dividend of $0.6775 per share, with an annualized dividend of $2.71, resulting in a dividend yield of 6.3% [14][15] - Analyst Michael Rollins reiterated a buy rating on Verizon with a price target of $48, noting the company's strong performance and upgraded full-year guidance [15][16] - Despite mixed key performance indicators and increased promotional costs, Rollins believes Verizon is well-positioned to meet its full-year guidance and sustain financial growth [16][17]

Core Viewpoint - Verizon Communications has shown improvement in its stock performance following solid second quarter results and positive guidance, with a year-to-date stock price increase of approximately 7% and a yield exceeding 6% [1] Financial Performance - Verizon's Q2 revenue increased by 5.2% to $34.5 billion, surpassing analyst expectations of $33.74 billion [6] - Wireless service revenue rose by 2.2% to $20.9 billion, while wireless equipment revenue surged by 25.2% to $6.3 billion [6] - Adjusted earnings per share (EPS) climbed 6% to $1.22, and adjusted EBITDA rose 4.1% to $12.8 billion [6] Subscriber Growth - The broadband business led growth, adding 293,000 net broadband subscribers, totaling 12.9 million, a year-over-year increase of over 12% [3] - The consumer wireless segment lost 51,000 postpaid subscribers but gained 50,000 prepaid subscribers [4] - Business service revenue increased by 1.6% to $3.6 billion, with 65,000 wireless retail postpaid net additions [5] Future Guidance - Verizon maintained its full-year 2025 wireless revenue growth forecast of 2% to 2.8% and increased the low end of its adjusted EPS growth forecast to 1% to 3% [7] - The company raised its operating cash flow outlook to between $37 billion and $39 billion, leading to a projected free cash flow of $19.5 billion to $20.5 billion [8][9] Dividend and Cash Flow - Verizon's dividend yield is approximately 6.4%, with a coverage ratio of 1.5x based on $8.8 billion in free cash flow generated in the first half of the year against $5.7 billion in dividends paid [10] - The company benefits from new tax legislation allowing for immediate 100% depreciation of certain assets, enhancing cash flow [11] Strategic Acquisitions - Verizon's acquisition of Frontier Communications is expected to significantly expand its fiber network, particularly in states like Florida, Texas, and California, enhancing its ability to bundle mobile and home internet services [14][15] Valuation - Verizon trades at a forward price-to-earnings (P/E) ratio of 9x based on 2025 earnings estimates, which is below AT&T's 13x multiple, indicating potential upside [16]

Financial Performance - Verizon Consumer Group's operating revenues for Q2 2025 reached $26.6 billion, a 6.9% increase from $24.9 billion in Q2 2024[166] - Verizon Business Group's operating revenues for Q2 2025 totaled $7.3 billion, reflecting a slight decrease of 0.3% compared to $7.3 billion in Q2 2024[168] - Consolidated operating revenues for the first half of 2025 were $67.99 billion, up 3.4% from $65.78 billion in the same period of 2024[179] - The Consumer segment's operating revenues for the first half of 2025 were $52.3 billion, a 4.6% increase from $50.0 billion in the same period of 2024[166] - The Business segment's operating revenues for the first half of 2025 were $14.6 billion, down 0.8% from $14.7 billion in the same period of 2024[168] - Consolidated net income for the three months ended June 30, 2025, was $5,121 million, an increase of $419 million or 8.9% from $4,702 million in 2024[201] - Consolidated EBITDA for the three months ended June 30, 2025, was $12,883 million, up from $12,215 million in 2024, representing an increase of $668 million or 5.5%[201] - Consolidated adjusted EBITDA for the three months ended June 30, 2025, was $12,807 million, an increase of $506 million or 4.1% from $12,301 million in 2024[201] - Total operating revenues increased by 6.9% to $26,648 million for the three months ended June 30, 2025, compared to $24,927 million in the same period of 2024[229] Operating Expenses - Consolidated operating expenses for the first half of 2025 were $51.84 billion, an increase of 2.8% from $50.44 billion in the same period of 2024[180] - Total operating expenses rose to $19,005 million for the three months ended June 30, 2025, an increase of 9.7% compared to 2024, and $37,199 million for the six months, up 6.3%[234] - Total operating expenses for the three months ended June 30, 2025, were $6,637 million, a decrease of $163 million (2.4%) compared to the same period in 2024[251] Capital Expenditures - Capital expenditures for the first half of 2025 amounted to $8.0 billion, with full-year expectations ranging from $17.5 billion to $18.5 billion[170] - Capital expenditures for the six months ended June 30, 2025, were $8.0 billion, a decrease of $118 million compared to $8.1 billion in 2024[271] Wireless Services - Wireless retail connections increased significantly, driven by a higher volume of wireless devices sold, with upgrades increasing by 31% and 14% for the three and six months ended June 30, 2025, respectively[188] - Wireless service revenue rose by 2.3% to $17,369 million for the three months ended June 30, 2025, compared to $16,985 million in the same period of 2024[229] - Wireless retail postpaid accounts decreased by 0.7% to 32,550,000 as of June 30, 2025, compared to 32,769,000 in the same period of 2024[229] - Wireless retail postpaid ARPA increased by 2.3% to $147.50 for the three months ended June 30, 2025, compared to $144.15 in the same period of 2024[229] - Wireless retail churn rate was 1.58% for the three months ended June 30, 2025, unchanged from the same period in 2024[229] - Wireless equipment revenue increased by 29.6% to $5,369 million for the three months ended June 30, 2025, compared to $4,143 million in the same period of 2024[229] Broadband Services - FWA broadband connections increased by 34.2% to 3,077,000 as of June 30, 2025, compared to 2,292,000 in the same period of 2024[229] - Total broadband connections grew by 9.4% to 10,425,000 as of June 30, 2025, compared to 9,530,000 in the same period of 2024[229] - Total broadband net additions were 181,000 for the three months ended June 30, 2025, a decrease of 21.6% compared to 231,000 in the same period of 2024[229] - Fios revenue increased by 1.0% to $2,924 million for the three months ended June 30, 2025, compared to $2,896 million in the same period of 2024[229] Tax and Income - Verizon anticipates a decrease in its 2025 cash income tax liability due to the One Big Beautiful Bill Act, estimating an increase in deferred tax liability by $1.5 billion to $2.0 billion by year-end 2025[174] - Provision for income taxes increased by $156 million or 11.7% to $1,488 million for the three months ended June 30, 2025, compared to $1,332 million in 2024[192] - The effective income tax rate increased to 22.5% for the three months ended June 30, 2025, compared to 22.1% in 2024, primarily due to higher income before taxes[192] Debt and Cash Flow - Average debt outstanding was $144,695 million for the three months ended June 30, 2025, compared to $151,410 million in 2024, indicating a decrease in debt levels[191] - Total debt as of June 30, 2025, was $146.0 billion, an increase from $144.0 billion at December 31, 2024[277] - Free cash flow for the six months ended June 30, 2025, was $8.804 billion, an increase of $306 million from $8.498 billion in the same period of 2024[290] - Net cash provided by operating activities increased by $188 million to $16,757 million for the six months ended June 30, 2025, compared to $16,569 million in 2024[266] Acquisitions and Investments - Verizon entered into a license purchase agreement to acquire spectrum licenses from UScellular for total consideration of $1.0 billion[304] - Verizon's acquisition of Frontier Communications is structured as a merger with a per share consideration of $38.50, subject to regulatory approvals[305] Risks and Controls - The company faces risks including high levels of indebtedness and significant litigation expenses, which could impact financial performance[313] - The company is involved in various litigation and regulatory proceedings but does not believe any are material as of the report date[314] - The Chief Executive Officer and Chief Financial Officer concluded that the registrant's disclosure controls and procedures were effective as of June 30, 2025[309] - There were no changes in the Company's internal control over financial reporting during the second quarter of 2025 that materially affected internal controls[312] Renewable Energy - Verizon has 28 renewable energy purchase agreements totaling approximately 3.7 gigawatts of anticipated renewable energy capacity[291]

Core Viewpoint - Verizon Communications reported solid earnings for Q2 2025, with rising revenue, earnings, and free cash flow, but concerns remain regarding its high debt levels, indicating potential struggles ahead without significant changes [1][12]. Financial Performance - Verizon's total debt reached nearly $146 billion by mid-2025, an increase from $144 billion at the end of the previous year, with unsecured debt rising by $2 billion [3]. - The company's total equity or book value stands at $104 billion, highlighting the strain of its debt obligations on the balance sheet [3]. - Over the past 12 months, Verizon incurred $6.6 billion in interest expenses, translating to slightly over 4% interest costs relative to its total debt of $154 billion, which is considered relatively low [5]. Debt and Interest Rates - Interest rates have increased since 2021, and while only about $2 billion of Verizon's debt is due this year, refinancing at higher rates is anticipated, potentially increasing future costs [6]. - The company has historically relied on debt to finance its telecom network, with a significant acquisition of C-band spectrum costing $52.9 billion in 2021 [4]. Dividend Sustainability - Verizon has maintained an 18-year streak of dividend increases, with a current dividend yield of 6.4%, significantly higher than the S&P 500 average of 1.2% and its competitors AT&T (4.1%) and T-Mobile (1.4%) [8]. - The dividend cost Verizon approximately $11.4 billion over the last year, which it can cover with its free cash flow of just over $20.1 billion, but a dividend cut could allow for debt reduction [9][10]. Market Position and Future Outlook - Despite the attractive dividend, the high cost and heavy debt burden may render the current dividend trajectory unsustainable, leading to potential struggles if a cut occurs [12]. - The low P/E ratio of 10 suggests limited downside risk, and improved financials could attract investors in the long run if the company focuses on reducing its debt [10][11]. - Comparisons with AT&T indicate that even after a dividend cut, a solid financial position could make Verizon stock appealing if it successfully manages its debt [13].

Group 1 - Verizon Communications reported better-than-expected second-quarter results and raised its full-year guidance, marking its 35th consecutive year of being recognized for the best wireless network quality by J.D. Power [1] - The company's forward price-to-earnings ratio is below 9.2, significantly lower than the S&P 500's forward earnings multiple of 22.7, indicating that Verizon's shares are not priced for perfection [8] - Verizon's business is largely resistant to the impact of tariffs and overall economic downturns, as wireless services are considered essential by consumers [10] Group 2 - The company is on track to close the acquisition of Frontier Communications in early 2026, which is expected to boost growth [12] - Verizon's forward dividend yield is 6.3%, providing a strong foundation for delivering double-digit percentage total returns, supported by an increase in free cash flow expected this year [13]

Market Overview - The market capitalization of major US stocks shows varied performance, with Oracle at 762.30 billion, Mastercard at 321.36 billion, and Visa at 770.15 billion, reflecting increases of +0.66%, +0.86%, and +0.68% respectively [3] - Exxon Mobil's market cap is 679.53 billion, with a slight decrease of -0.98%, while Johnson & Johnson and Netflix show minor changes of -0.08% and -0.05% respectively [3] - Companies like Wells Fargo and Cisco have market caps of 270.15 billion and 279.59 billion, with respective increases of +0.98% and -0.58% [3] Notable Stock Movements - T-Mobile US Inc experienced a significant increase of +6.20%, reaching a market cap of 272.19 billion [3] - General Electric and Coca-Cola saw market caps of 285.05 billion and 298.76 billion, with increases of +0.37% and +0.91% respectively [3] - Companies like Disney and Goldman Sachs have market caps of 229.06 billion and 221.80 billion, with slight changes of +0.01% and -0.60% [3] Sector Performance - The technology sector shows mixed results, with Intel at 991.05 billion, down -3.28%, while AMD increased by +2.46% to 254.92 billion [5] - The consumer goods sector is represented by companies like Procter & Gamble and Coca-Cola, with market caps of 371.68 billion and 298.76 billion, showing slight increases [3][4] - The energy sector, represented by Exxon Mobil and Chevron, shows varied performance, with Exxon down -0.98% and Chevron up +0.66% [3] Summary of Key Companies - Oracle's market cap stands at 762.30 billion, reflecting a positive trend [3] - Mastercard and Visa show strong performance with market caps of 321.36 billion and 770.15 billion, both increasing [3] - Companies like Pfizer and Comcast have market caps of 1579.81 billion and 1332.00 billion, with Pfizer showing minimal change and Comcast down -3.16% [4][5]