Vodafone Group (NASDAQ:VOD) Announces Quarterly Earnings Results, Misses Expectations By $1.79 EPS

Vodafone Group (NASDAQ:VOD) posted its quarterly earnings results on Tuesday. The cell phone carrier reported ($1.18) EPS for the quarter, missing analysts’ consensus estimates of $0.61 by ($1.79), FiscalAI reports. The company had revenue of $12.38 billion during the quarter, compared to analyst estimates of $25.32 billion.

Here are the key takeaways from Vodafone Group’s conference call:

• Vodafone raised FY 2027 guidance; the midpoint now implies about 7% organic Adjusted EBITDAaL growth and 21% Adjusted free cash flow growth.
• First-half momentum strengthened, with Q2 service revenue growth accelerating to 6.4%, and Vodafone Business growing 6.6%; Africa and Türkiye also delivered double-digit organic growth.
• Vodafone reported more than €200 million of gross savings in the first half and expects over €200 million of net OpEx savings this fiscal year, as it works toward more than €1 billion in annual net savings by FY 2030.
• Germany remains a challenge despite improving broadband and B2B trends. The ECJ ruling reduced EBITDA by about €100 million in the half, Vodafone recorded a non-cash impairment, and it announced another 2,300 role reductions.
• Vodafone’s increased Safaricom stake is facing a legal challenge in Kenya; the company said the appeal is being fast-tracked and that the court has maintained the status quo while the process continues.

Vodafone Group Price Performance

VOD traded down $0.32 on Tuesday, reaching $15.38. The company had a trading volume of 1,497,448 shares, compared to its average volume of 4,081,053. The company has a quick ratio of 1.11, a current ratio of 1.14 and a debt-to-equity ratio of 0.84. Vodafone Group has a fifty-two week low of $11.71 and a fifty-two week high of $17.71. The company’s fifty day moving average is $16.33 and its 200 day moving average is $15.43.

Wall Street Analyst Weigh In

VOD has been the subject of a number of recent analyst reports. Zacks Research raised Vodafone Group from a “strong sell” rating to a “hold” rating in a research report on Tuesday, November 3rd. Deutsche Bank Aktiengesellschaft reissued a “buy” rating on shares of Vodafone Group in a report on Friday, October 9th. Berenberg Bank restated a “buy” rating on shares of Vodafone Group in a research note on Friday, October 2nd. Wall Street Zen downgraded Vodafone Group from a “buy” rating to a “hold” rating in a report on Tuesday, September 22nd. Finally, DZ Bank reaffirmed a “neutral” rating on shares of Vodafone Group in a report on Monday, August 17th. Four equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and four have assigned a Sell rating to the stock. Based on data from MarketBeat.com, Vodafone Group has an average rating of “Hold” and a consensus price target of $13.13.

Vodafone Group News Roundup

Here are the key news stories impacting Vodafone Group this week:

• Positive Sentiment: Vodafone raised its full-year outlook, including its free-cash-flow forecast, after a strong first half. The company pointed to cost savings and solid performance in business-focused operations as key drivers. Vodafone raises free cash flow forecast after strong first half
• Neutral Sentiment: Vodafone Deutschland plans to cut 2,300 jobs as part of its cost-reduction efforts. The cuts may help savings, but also underline the challenges facing its German business. Vodafone Deutschland to axe 2,300 jobs as it steps up cost-cutting efforts
• Negative Sentiment: The company reported a substantial net loss, with Germany identified as a major drag, and flagged the need to improve performance in that market. Vodafone suffers huge net loss on Germany hit but raises full-year outlook
• Negative Sentiment: Quarterly EPS and revenue were reported below analyst expectations, adding to concerns despite the improved outlook. Vodafone Group quarterly earnings data
• Negative Sentiment: A technical analysis report said the shares were more than 13% below their yearly high and in correction territory, with a potentially risky chart pattern. Vodafone share price forms a risky pattern

About Vodafone Group

Vodafone Group is a telecommunications company headquartered in the United Kingdom. It provides mobile and fixed-line connectivity, broadband, voice and data services to consumers, businesses and public-sector organizations.

The company also offers business technology services, including Internet of Things connectivity and digital solutions. Its operations and services span Europe and Africa, with Vodacom serving as a major part of its African business, and it works with partner networks to serve customers in other markets.

Vodafone traces its roots to Racal Telecom, which was established in 1984 and became an independent company in 1991.