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].