Why Verizon Stock Is Soaring Today

Core Insights - Verizon's stock experienced a significant increase of 5% following the release of its strong second-quarter earnings report, outperforming market indices like the S&P 500 and Nasdaq Composite [1][2]. Financial Performance - Verizon reported non-GAAP adjusted earnings per share of $1.22 on sales of $34.5 billion for Q2, exceeding Wall Street's expectations of $1.19 per share and $33.79 billion in sales [4]. - Revenue increased by 5% year over year, with wireless service revenue reaching $20.9 billion, marking the highest result in the industry for the period [4]. - Equipment revenue saw a substantial increase of approximately 25% year over year, totaling $6.3 billion, while broadband connections rose by about 12% year over year to 12.9 million [5]. Future Outlook - In light of the strong Q2 results, Verizon raised its full-year guidance, now expecting adjusted earnings per share growth between 1% and 3% annually, an increase from the previous forecast of 0% to 3% [6]. - Despite the positive earnings report, Verizon's stock is down approximately 15.5% year-to-date, trading at about 9.2 times this year's expected earnings, with a dividend yield of around 6.3% [7].