Verizon (NYSE:VZ) Q4 2025 Earnings call January 30, 2026 08:00 AM ET Company ParticipantsBrady Connor - Head of Investor RelationsDan Schulman - CEOTony Skiadas - CFOConference Call ParticipantsBen Swinburne - AnalystJohn Hodulik - AnalystMichael Ng - AnalystMichael Rollins - AnalystOperatorGood morning, and welcome to Verizon's fourth quarter 2025 earnings conference call. At this time, all participants have been placed in a listen-only mode, and the call will be open for questions following the presentati ...

Verizon (NYSE:VZ) Q4 2025 Earnings call January 30, 2026 08:00 AM ET Speaker6Good morning, and welcome to Verizon's fourth quarter 2025 earnings conference call. At this time, all participants have been placed in a listen-only mode, and the call will be open for questions following the presentation. Today's conference is being recorded. If you have any objections, you may disconnect at this time. I would now like to turn the call over to Mr. Brady Connor, Senior Vice President, Investor Relations.Speaker1Th ...

The cable and wireless company, which also owns the baseball team, says it earned a profit attributable to shareholders of $743 million or $1.37 per diluted share for the quarter ended Dec. 31. The result was up from a profit of $558 million or $1.02 per diluted share in the last three months of 2024. On an adjusted basis, Rogers says it earned $1.51 per diluted share in its latest quarter, up from an adjusted profit of $1.46 per diluted share a year earlier.Revenue totalled $6.17 billion, up from $5.48 bil ...

Core Insights - The article discusses various high-yield dividend stocks and investment opportunities, emphasizing the importance of reliable income streams for investors [3][6][7] Investment Opportunities - Ares Capital Corp. (NASDAQ: ARCC) is highlighted as a high-yielding business development company (BDC) with a 9.56% dividend yield, specializing in financing middle-market companies through various financial strategies [2][12] - CTO Realty Growth Inc. (NYSE: CTO) is noted for its 9.21% dividend yield and a strong occupancy rate of 96%, making it an attractive option for passive income investors [13][14] - Energy Transfer L.P. (NYSE: ET) is recognized for its substantial 7.68% distribution and extensive portfolio of energy assets, solidifying its position in the midstream energy sector [19][20] - OneMain Holdings Inc. (NYSE: OMF) offers a 7.43% dividend yield and provides personal loan products, indicating significant upside potential from current trading levels [22][25] - Verizon Communications Inc. (NYSE: VZ) is highlighted for its 7.06% dividend and solid performance, trading at 9.13 times its estimated 2026 earnings [26][31] Market Trends - The article notes a potential pullback in the market after significant fluctuations in 2025, suggesting that investors should focus on stocks with solid forward momentum [4][5] - The emphasis on dividend stocks reflects a broader trend among investors seeking reliable income amidst market volatility [6][7]

Core Viewpoint - Verizon Communications is undergoing a significant strategic shift to enhance customer experience and value proposition, while maintaining a strong dividend yield of 6.9% despite recent stock performance challenges [2][4][6]. Financial Performance - Verizon's revenue grew 1.5% year over year to $33.8 billion, with service revenue increasing by 0.8% to $28.2 billion and wireless equipment revenue rising by 5.2% to $5.6 billion [7]. - The company reported a decline in business unit revenue by 2.8% year over year to $7.1 billion, while overall adjusted EPS rose by 1.7% to $1.21 and EBITDA increased by 2.4% to $12.8 billion [9]. - Operating cash flow for the first nine months of the year was $28 billion, with free cash flow at $15.7 billion, resulting in a coverage ratio of over 1.8x for dividends [6]. Strategic Initiatives - The new CEO, Daniel Schulman, plans to shift the company's focus from a technology-centric approach to one that prioritizes customer experience, alongside increased investments in fiber and service bundling [4][5]. - The pending acquisition of Frontier Communications is expected to significantly enhance Verizon's fiber network and create cross-selling opportunities for wireless services [5][13]. Market Position - Verizon's stock is currently trading down approximately 16% from its 52-week high and about 35% from 2020 highs, making it an attractive buy with a forward P/E ratio of 8.3 compared to AT&T's 11.2 [2][13]. - The company continues to project wireless revenue growth between 2% and 2.8% and adjusted EPS growth of 1% to 3% for the full year 2025 [10][11].

Core Insights - T-Mobile US reported third-quarter earnings that slightly exceeded consensus estimates, with a revenue increase of 4% year-over-year to $21.95 billion, while adjusted earnings per share fell 7% to $2.41 due to an impairment expense [2][3]. Financial Performance - Adjusted earnings per share for Q3 were $2.41, down from the previous year, while revenue rose to $21.95 billion [2]. - Analysts had expected earnings of $2.40 per share on revenue of $21.91 billion, indicating a slight outperformance in revenue but a marginal miss in earnings [2]. Subscriber Growth - T-Mobile added over one million postpaid phone subscribers, surpassing estimates of 841,000, and outpacing AT&T, which added 405,000 [3]. - The company also gained 506,000 wireless high-speed internet subscribers, bringing its total 5G broadband customers to 7.955 million as of September 30 [3]. Stock Market Reaction - Following the earnings report, T-Mobile's stock decreased nearly 1% to around $225, despite a 3% increase in shares leading up to the report [4]. - Prior to the earnings announcement, T-Mobile shares had fallen to their lowest level since late January [4]. Capital Expenditure - Capital spending in Q3 increased by 35% to $2.6 billion, and the company raised its 2025 capital spending estimate to $10 billion from $9.5 billion [5]. Leadership Changes - T-Mobile announced that Chief Operating Officer Srini Gopalan will become the next CEO effective November 1, succeeding Mike Sievert [5]. Stock Ratings - T-Mobile's stock holds an Accumulation/Distribution Rating of D, indicating institutional selling over the past 13 weeks [6]. - The stock has an IBD Composite Rating of 57 out of a possible 99, reflecting a blend of key fundamental and technical metrics [6].

Core Insights - Proactive provides fast, accessible, and actionable business and finance news content to a global investment audience [2] - The company focuses on medium and small-cap markets while also covering blue-chip companies and broader investment stories [3] - Proactive's news team delivers insights across various sectors including biotech, mining, oil and gas, and emerging technologies [3] Technology Adoption - Proactive is committed to adopting technology to enhance workflows and content production [4] - The company utilizes automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]

Core Viewpoint - Federal Reserve Chair Jerome Powell hinted at potential interest rate cuts due to labor market weakness, suggesting investors consider adding dividend stocks for stable income [1] Group 1: EOG Resources - EOG Resources is a crude oil and natural gas exploration and production company, recently acquiring Encino Acquisition Partners for $5.6 billion, which is expected to enhance its free cash flow and shareholder returns [3][4] - EOG raised its quarterly dividend by 5% to $1.02 per share, resulting in an annualized dividend of $4.08 per share and a yield of 3.8% [4] - RBC Capital analyst Scott Hanold reiterated a buy rating on EOG, raising the price target from $140 to $145, while TipRanks' AI Analyst has an "outperform" rating with a price target of $133 [4][6] - Hanold updated his earnings per share (EPS) estimates for 2025 and 2026 to $10.07 and $9.46, respectively, reflecting higher oil price expectations [5] - Hanold believes EOG will outperform its peers due to its technological edge, strong balance sheet, and capital efficiency [6] Group 2: Coterra Energy - Coterra Energy, focused on exploration and production in the Permian Basin, Marcellus Shale, and Anadarko Basin, paid a quarterly dividend of 22 cents per share, yielding 3.4% [7] - Analyst Gabriele Sorbara reiterated a buy rating on Coterra but lowered the price target from $35 to $32, while TipRanks' AI Analyst has a "neutral" rating with a price target of $26 [8] - Sorbara expects Q3 oil production to exceed expectations but anticipates EBITDA and free cash flow may lag due to gas pricing issues [10] - Sorbara maintains a buy rating on Coterra, citing attractive valuation and potential for strong capital returns [11] Group 3: AT&T - AT&T declared a quarterly dividend of 27.75 cents per share, with an annualized dividend of $1.11 per share, yielding 4.3% [13] - Citigroup analyst Michael Rollins reiterated a buy rating on AT&T with a price target of $32, expecting strong Q3 performance across strategic products [14][15] - Rollins forecasts 300,000 postpaid phone net additions and 2.5% year-over-year growth in wireless service revenue for Q3 [15] - The analyst also estimates 286,000 fiber net additions and 210,000 net additions for fixed wireless access in Q3 [16] - Rollins believes AT&T's broadband opportunity is an under-appreciated aspect of its financial growth prospects [17]

Core Viewpoint - Verizon's new CEO emphasizes a strategy focused on increasing market share, despite investor sentiment suggesting that continued losses may be more favorable for the company [1] Company Focus - The new leadership at Verizon is committed to a growth strategy aimed at enhancing market share [1] Investor Sentiment - Investors appear to believe that Verizon's ongoing decline in market position may be beneficial for the company overall [1]

Group 1: NextEra Energy (NEE) - NextEra Energy is a large U.S. utility and clean energy company, operating a regulated utility business (Florida Power & Light) and a fast-growing renewable energy & storage business (NextEra Energy Resources) [3] - Wall Street rates NEE stock as a "Moderate Buy," with 12 out of 21 analysts rating it a "Strong Buy," and an average target price of $82.17, indicating a 15.6% upside potential [1] - The company has a strong dividend yield of 3.1% and a low payout ratio of 56.9%, allowing for a commitment to growing dividends at approximately 10% annually through at least 2026 [2] Group 2: Verizon Communications (VZ) - Verizon is one of the largest telecommunications companies in the U.S., providing wireless services, broadband, fiber, and other network services [6] - Wall Street rates VZ stock as a "Moderate Buy," with 9 out of 29 analysts rating it a "Strong Buy," and an average target price of $48.43, suggesting a 10.9% upside potential [4] - The company offers a high dividend yield of 6.3% and maintains a healthy payout ratio of 56.7%, with expected free cash flow between $19.5 billion and $20.5 billion in 2025 to support dividend payments [5] Group 3: AbbVie (ABBV) - AbbVie is one of the largest pharmaceutical companies in the U.S., focusing on immunology, oncology, and other therapeutic areas, with a history of revenue from drugs like Humira [8] - Wall Street rates ABBV stock as a "Moderate Buy," with 16 out of 29 analysts rating it a "Strong Buy," and an average target price of $216.58, indicating a 2.3% upside potential [10] - The company offers a dividend yield of 2.9% and has a payout ratio of 46%, with a 53-year history of raising its dividend, making it a Dividend King [9] Group 4: Pfizer (PFE) - Pfizer develops and sells vaccines and therapeutics across various disease areas, focusing on expanding its non-Covid product range [11] - Wall Street rates PFE stock as a "Moderate Buy," with 6 out of 23 analysts rating it a "Strong Buy," and an average target price of $27.90, suggesting a 13.5% upside potential [13] - The company offers a dividend yield of 6.9% and has been increasing its dividend for 16 consecutive years, with a forward payout ratio of 54.6% [12] Group 5: AT&T (T) - AT&T is a major player in U.S. telecommunications, focusing on core telecom operations after restructuring by selling off non-core assets [14] - Wall Street rates T stock as a "Moderate Buy," with 17 out of 29 analysts rating it a "Strong Buy," and an average target price of $30.47, indicating a 4.4% upside potential [16] - The company offers a dividend yield of 3.8% and has a low payout ratio of 49.9%, with projected free cash flow of around $16 billion in 2025, supporting its dividend payments [15]