The latest Market Talks covering Technology, Media and Telecom. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.

1210 ET - Verizon is looking at a robust and resilient market for postpaid phone connections, where service is paid for each month on a contract, Verizon's Sowmyanarayan Sampath says on a call with analysts. The telecom giant is expecting to add about 8 million to 8.5 million postpaid lines in 2025 across its business and consumer segments, Sampath says. About half of that will come from customers migrating to a postpaid plan from a prepaid plan, a trend that was also seen in 2024, according to Sampath. Verizon added 568,000 postpaid phone connections in the fourth quarter of 2024, topping analyst estimates for 488,300 additions, according to FactSet. Shares rise 1.4% to $39.72. (dean.seal@wsj.com)

1205 ET - Investors were quick to point out higher inventory levels and lower margins in Texas Instruments' 4Q earnings, which given that sentiment for analog stocks is already lukewarm at best, was viewed as a glass half empty, UBS analysts say in a research note. The chipmaker's recent quarter was otherwise as expected, they note. The company says it wants to keep inventory levels higher due to expectations that a recovery is coming, evidenced by its 1Q revenue outlook which calls for year-over-year growth. UBS analysts agree: "We maintain our Buy rating, especially on a pullback, as we continue to see a sharp recovery taking place as we move through this year." Shares fall 6.7%. (connor.hart@wsj.com)

1109 ET - Verizon expects to see phone upgrades rise in the mid-single-digit percentage range this year, continuing a rebound in 4Q that followed a run of tough quarters, CFO Tony Skiadas says on a call with analysts. Customers have been keeping their phones longer, in part because of how much better and more resilient they've become, which has pushed the average lifespan of a phone to more than 40 months, CEO Hans Erik Vestberg says on the call. That dynamic should change some this year as customers seek out new technologies and hardware designs, the CEO says. The upgrade cycle should also improve as customers wrap up their three-year device-payment programs, Verizon's Sowmyanarayan Sampath says on the call. (dean.seal@wsj.com)

1007 ET - Verizon Communications delivered another quarter of improving wireless-subscriber revenue, showcasing progress in turning around its consumer wireless business after struggling for several quarters, Raymond James analyst David Heger says in a research note. The telecom giant should be able to keep its wireless-service revenue growing as average user per subscriber rises and its execution on the consumer side improves, the analyst says. He notes that Verizon has increased handset promotional activity and simplified its pricing to better attract consumer-side subscribers. Consumer revenue overall was up 2.2% year-over-year at $27.6 billion, beating Wall Street projections for $27.26 billion, according to FactSet. (dean.seal@wsj.com)

0907 ET - Verizon Communications did better than analysts were expecting on key performance indicators tied to its customer growth. Retail postpaid phone net additions were 568,000, up from 449,000 a year earlier and topping analyst estimates for 488,300 additions, according to FactSet. The improved results mostly came on the consumer side with 5.5% higher gross additions and stable churn, Scotiabank analysts say in a research note. The company added 51,000 new Fios Internet users, beating the analyst consensus estimate of 46,200. Verizon also logged 373,000 fixed wireless net additions, which beat the 360,000 estimate from Scotiabank analysts. Shares rise 2% to $39.95 premarket. (dean.seal@wsj.com)

0821 ET - A Conservative government in Canada likely won't be a deregulating force for the telecom sector, but TD Cowen's Vince Valentini thinks that it wouldn't take a tougher stance either. In a report, the analyst says conservative governments in the past have been in favor of "tough talk" toward telecoms, encouraging more competition and lower pricing for consumers. Valentini points to the Harper Conservative government in 2007/2008 which had set the stage for a possible fourth carrier. With a four-carrier environment today, Valentini expects the Conservatives maintain the policy going forward. "[Conservative leader] Poilievre has been outspoken in favor of less consolidation (he opposed the Rogers-Shaw merger on an industry Canada committee) and more choice and competition in telecom," he said. (adriano.marchese@wsj.com)

0631 ET - BT Group's share price momentum faded away as concerns over competition, regulation and footloose customers remain, AJ Bell analysts write in a note. "This means that expectations [for the upcoming 3Q update next Thursday] are low as Allison Kirkby becomes the latest BT boss to try and negotiate the many cross-currents that face the company," the analysts say. The London-listed telecommunications group struggles to generate much by way of growth overall. But the real difficulty lies in the business segment, especially outside the U.K., which showed a sharp fall in sales and earnings in the six-month period to September, they add. Shares are down 0.3% at 140.70 pence.( najat.kantouar@wsj.com)

0454 ET - Bloomsbury Publishing's capacity to face down Amazon shows the strong position it now commands in the publishing world, AJ Bell's Russ Mould writes in a note. "Bloomsbury getting into a fight with the world's biggest bookseller over contract terms was a risky move and one that could have backfired dramatically," Mould says. However, a compromise was reached overnight as Bloomsbury now says a new deal has been signed. This shows that the London-listed publisher isn't a pushover, Mould adds. Shares are up 2.1% at 668 pence. ( najat.kantouar@wsj.com)

0440 ET - Ericsson's fourth quarter revenues were in line with consensus but Ebita was 8%-10% below, and based on outlook comments, UBS expects minor changes to 2025/2026 consensus, analyst Francois-Xavier Bouvignies writes. Based on industry experts Dell'Oro, Ericsson estimates the 2025 radio access network equipment market should grow by 0 to 2% in 2025, versus consensus at 5% growth year-on-year for network revenues. "Following stock up 9% year-to-date and 61% in one year, we believe weaker fourth quarter EBIT and unchanged 2025/2026 outlook is likely to put some pressure on the share relative to market." Shares fall 8.4% to 89.46 Swedish kronor. (dominic.chopping@wsj.com)

0432 ET - Bloomsbury Publishing holds exceptional intellectual property that supports future growth, Peel hunt analysts Jessica Pok and Melanie Yang write in a note. The London-listed publisher's track record of discovering emerging and award-winning authors is undeniable, the analysts say. "Management has built a diversified 'portfolio of portfolios' across different formats, content, and regions, providing significant growth opportunities for the future," they add. Bloomsbury's stock has potential for a premium rating, given the company's positive prospects, the U.K. brokerage says. Shares are up 0.9% at 660 pence. (najat.kantouar@wsj.com)

0341 ET - Ericsson consensus sales expectations probably need to come down after the company reported mixed results, JPMorgan analysts Sandeep Deshpande and Anchal Sahu write. The networks business performance was strong but overall earnings missed consensus due to performance outside networks, they say. With the company indicating that first quarter sales growth will be similar to average seasonality, the bank expects the consensus sales estimates need to decline by a low-mid single digit percentage. However, with networks gross margin guided to 48% versus 47.5% in consensus, first quarter earnings consensus may decline by a low single digit percentage, the bank says. Shares fall 8.2% to 89.58 Swedish kronor. (dominic.chopping@wsj.com)

0322 ET - Ericsson headline numbers are on the soft side, with adjusted EBIT missing Bloomberg consensus by 5%, but sales registered a slight 1% beat, Danske Bank senior analyst Mads Lindegaard Rosendal writes. Ericsson's topline grew 2% on year, which masked vast regional differences, he says. The U.S. grew 54% on year while other regions declined sharply. "In terms of forward-looking guidance, the report was decent, with Ericsson expecting a gradual recovery in the radio access network market with first quarter 2025 growth in networks roughly in line with the groups three year average." Rosendal says Ericsson has done very well in terms of controlling costs and generating cash flow. Shares fall 8.9% to 88.90 Swedish kronor. (dominic.chopping@wsj.com)

(END) Dow Jones Newswires

January 24, 2025 12:20 ET (17:20 GMT)

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