Key Takeaways

• Verizon shares fell Tuesday morning after the company’s third-quarter revenue and net income came in below analysts’ expectations.

• Adjusted profits narrowly beat estimates after accounting for over $2 billion in one-time costs.

• The telecommunications giant also affirmed its full-year outlook.

Verizon (VZ) reported third-quarter results below analysts’ expectations Tuesday morning, despite continuing in order so as to add wireless phone and web subscribers.

The telecommunications giant reported $33.33 billion in revenue, roughly flat year-over-year and barely below analysts’ consensus estimates compiled by Visible Alpha. Profit fell well short, declining 30% to $3.41 billion, or 78 cents per share, greater than $1 billion wanting expectations.

Verizon said its lackluster profit numbers were resulting from greater than $2.3 billion in one-time charges for acquisitions, severance costs, and other charges. Excluding special items, Verizon’s adjusted earnings per share (EPS) came in a penny above estimates at $1.19.

The company said last month it expects to lose about 4,800 employees through a buyout program by March 2025, which accounted for $1.7 billion of the $2.3 billion in one-time charges inside the Q3 report.

CEO Says Verizon Set Up for ‘Disciplined Growth’

CEO Hans Vestberg said the company’s recent announcements similar to the $20 billion acquisition of Frontier Communications (FYBR) and a $3.3 billion deal to lease 1000’s of communications towers “have set Verizon up for disciplined growth, now and into the long term.”

Verizon also affirmed its full-year adjusted EPS guidance of $4.50 to $4.70.

Verzon shares were down almost 4% at $42.06 about half-hour before the opening bell Tuesday.

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