Verizon Communications recently announced plans to redeem $984 million in notes, a move aimed at optimizing its debt profile, which aligns with its strategic financial management. Over the last quarter, Verizon's share price rose by 9%, supported by strong fourth-quarter earnings with increased revenue and a notable turnaround in net income from a prior loss to a significant profit. Additionally, its quarterly dividend announcement likely reinforced investor confidence. The company’s positive momentum coincided with the broader market's modest recovery, as the S&P 500 and Nasdaq edged higher, contributing to Verizon's robust quarterly performance.

Be aware that Verizon Communications is showing 2 weaknesses in our investment analysis.

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Over the last year, Verizon's total shareholder return, considering both share price appreciation and dividends, was 13.78%. This performance highlights the company's efforts as it underperformed the US Telecom industry's 28.3% annual return while surpassing the broader US market's 10.2% return. Notably, Verizon expanded its fixed wireless access and leveraged its fiber and edge assets, strengthening its market position for future growth. Initiatives like the rollout of IoT-centric services and partnerships with companies like VIAVI Solutions and Singtel have further enhanced its connectivity offerings, contributing to its market presence.

Verizon's earnings over the past year have grown considerably by more than 50%, outpacing its 5-year average decline. This surge in profits was supported by Q3 and Q4 earnings revisions and enhanced net margins. In standby with business transformation efforts, Verizon declared and maintained a high dividend payout, reinforcing investor confidence. Additionally, its active debt management, such as the redemption of notes, has improved financial stability and long-term shareholder value.

Take a closer look at Verizon Communications' potential here in our financial health report.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NYSE:VZ.

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