Verizon Communications (NYSE:VZ) recently released its Q1 2025 earnings. The results were quite solid, but the stock still took a hit and is currently down as of writing. The decline has left investors wondering whether this is a momentary stumble or a sign of deeper issues. More importantly, many are asking: Is this dip a golden opportunity to buy Verizon stock at a discount? Let’s take a look.
Q1 2025 earnings were quite strong as EPS of $1.19 surpassed analyst expectations of $1.15. Revenue grew 1.5% to $33.49 billion and beat estimates of $33.28 billion. The consumer segment saw a 2% year-over-year increase due to demand for customizable offerings like myPlan and myHome.
The primary culprit appears to be a significant loss of postpaid phone subscribers. Verizon reported a net loss of 289,000 retail subscribers. Analysts expected around 218,000 losses. This churn spooked the market since customers are reassessing premium plans or opting for cheaper competitors. And while the business segment added 67,000 net new phone subscribers, it wasn't enough to offset the broader trend. This subscriber bleed is a red flag, but not a dealbreaker since the rest of the print came in good.
I wouldn’t shy away from buying VZ stock now. The earnings report was good enough to offset the subscriber losses and not send the stock cratering. The biggest draw to VZ stock is that it comes with a dividend yield of 6.34%. This is well-covered by earnings. On top of that, the stock itself has little downside risk and has price targets going up to $52.
