Verizon Stock Rises After Earnings. The New CEO’s Aggressive Plans for Growth.

(Courtesy Verizon)

Key Points

• Verizon reported a third-quarter profit of $1.21 per share, exceeding analyst estimates of $1.19 per share.
• Revenue increased by 1.5% to $33.8 billion, falling short of the $34.3 billion analysts had forecast.
• Verizon added 44,000 new phone contract customers, surpassing the Street’s forecast of 19,000 additions.

Verizon Communications stock was rising on Wednesday after the wireless carrier beat on earnings, missed on revenue, and promised to make big changes to its business under new CEO Dan Schulman.

Shares climbed 1.5% to $39.92 in early trading. The S&P 500 was 0.4% higher.

Verizon reported a third-quarter profit of $1.21 a share, as revenue climbed 1.5% to $33.8 billion from a year ago. Analysts were estimating a profit of $1.19 a share on revenue of $34.3 billion, according to a FactSet poll.

More people than expected signed up for phone contracts over the quarter. Verizon reported 44,000 customer additions across its consumer and business divisions, well above the 19,000 additions that the Street had forecast.

The company also stuck by its current guidance, which calls for adjusted earnings per share growth of between 1% and 3% and wireless service revenue growth of 2% to 2.8%.

Created with Highcharts 9.0.1Source: FactSetAs of Oct. 29, 4 p.m. ET

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Schulman, who succeeded Hans Vestberg as Verizon’s CEO earlier this month, promised “bold and fiscally responsible action” in Wednesday’s earnings release. He’s facing an uphill battle to revive the faltering stock, which is down 1.6% this year, amid stubborn inflation, fierce competition from rivals AT&T and T-Mobile , and a White House deportation drive that could limit the number of potential new subscribers for the Big Three wireless companies.

“These will not be incremental changes,” he said. “We will aggressively transform our culture, our cost structure, and the financial profile of Verizon in order to put our customers first, compete effectively, and deliver sustainable returns for our shareholders.”

Write to George Glover at george.glover@dowjones.com