Verizon reported better-than-expected first-quarter earnings and revenue
Verizon Communications Inc. (NYSE:VZ) stock is down 2.4% to trade at $41.92, after reporting first-quarter adjusted earnings of $1.19 per share on $33.49 billion in revenue -- both topping analyst estimates. However, the telecom giant also reported a larger-than-expected loss of 289,000 postpaid net phone subscribers, compared to the 197,000 decline analysts anticipated. The company cited inflationary pressures as a possible factor behind the cancelations but reaffirmed its full-year guidance.
From a technical perspective, Verizon stock is retreating toward its year-to-date breakeven mark and has shed 5.5% so far this quarter. Today’s slide pushed the shares below their 320-day moving average, setting them up for their first close beneath this long-term trendline since mid-February -- a potentially bearish signal for traders watching the broader uptrend.
In the options pits, volume is running at twice the intraday average. So far today, 12,000 calls and 7,752 puts have traded, with the weekly 4/25 44-strike call and 43-strike call seeing the most activity. Calls are slightly more popular than puts on an absolute basis, suggesting traders may be positioning for a short-term bounce despite the post-earnings dip.
This marks a potential shift from recent sentiment trends. Over the past two weeks, puts have been bought at a much faster-than-usual pace. Verizon’s 10-day call/put volume ratio across the ISE, CBOE, and PHLX ranks in the 89th percentile of its annual range -- indicating a strong bearish tilt in recent positioning. If today's call skew persists, it could signal growing confidence in a rebound, or at least a slowdown in downside expectations.