Verizon stock price trades modestly lower on revenue decline

Shares of Verizon (NYSE:VZ) are trading around 0.5% lower in New York today after the company reported a drop in revenue and monthly subscribers for the first quarter.

Fundamental analysis: Verizon tops earnings, misses on revenue

Verizon reported that it earned $1.26 per share in the first quarter, above analysts’ average estimate of $1.22. Overall, the profits declined 17.4% from the same period last year as there were less purchases amid the COVID-19 outbreak. 

The wireless carrier believes that the COVID-19 outbreak reduced the company’s profit by 4 cents for the first quarter. Furthermore, it said that its revenue dropped 1.6% to $31.6 billion from a year earlier, while analysts expected revenue of $32.27 billion.

The market also expected the company to add just 100 subscribers in the Q1, but Verizon disappointed once again by saying it lost 68,000 monthly subscribers in the same period. 

Verizon withdrew its full-year revenue outlook, while it expects its full-year adjusted earnings per share to come between a drop of 2% and a growth of 2%. The company previously expected to grow 2% to 4% this year. 

Technical analysis: Stock price struggles at $58

In general, shares of Verizon are holding up very well among the stock market crash this year. The stock price has managed to recover more than 70% of losses from February and early March. 

The outlook for Verizon stock price now looks more inclined to the downside as it struggles to get above $58 on a sustainable basis. 

On a weekly chart, the price action is supported by the 100-WMA at $56.73. A break of this indicator would pave the way for a trip south to $53.13 where the 200-WMA is located. 

Summary

Verizon stock price lost around 0.5% after the company reported a drop in revenue and the number of monthly subscribers, but topped profit expectations for the first quarter.