Vodafone Group (NASDAQ:VOD – Get Free Report) announced its quarterly earnings results on Tuesday. The cell phone carrier reported ($0.29) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.32 by ($0.61), FiscalAI reports. The company had revenue of $11.91 billion during the quarter, compared to analysts’ expectations of $12.35 billion.
Here are the key takeaways from Vodafone Group’s conference call:
- Vodafone said FY26 results came in at the upper end of expectations, with 5.1% Q4 service revenue growth, 4.5% organic adjusted EBITDA growth and EUR 2.6 billion of adjusted free cash flow.
- Management highlighted a more confident medium-term outlook, reiterating a goal of double-digit organic adjusted free cash flow growth as the company enters a “new chapter” after a major transformation.
- In Germany, Vodafone expects EBITDA to remain under pressure in FY27, with continued weakness in mobile offset only partly by improving broadband and B2B trends.
- The U.K. integration is progressing, with management pointing to network quality gains, record home broadband customer growth, and first meaningful synergy delivery in FY27 after taking full ownership of VodafoneThree.
- Africa remains a major growth engine, with the company citing its largest fintech platform, over 100 million users, and the region’s strongest service revenue growth in almost two decades.
Vodafone Group Price Performance
NASDAQ:VOD traded up $0.44 during trading hours on Wednesday, hitting $15.54. The company’s stock had a trading volume of 2,345,415 shares, compared to its average volume of 4,579,479. The business’s 50-day moving average is $15.15 and its two-hundred day moving average is $13.99. The company has a current ratio of 1.17, a quick ratio of 1.13 and a debt-to-equity ratio of 0.78. Vodafone Group has a 52-week low of $8.98 and a 52-week high of $16.60.
Key Stories Impacting Vodafone Group
- Positive Sentiment: Vodafone swung to an annual profit, with revenue and service revenue both rising, supported by the Three UK consolidation and better performance in core markets.
- Positive Sentiment: Management signaled the company is entering a “new chapter” and expects further earnings growth over the coming year, which may support the stock. Article Title
- Neutral Sentiment: While the turnaround is now partly priced in, analysts note that much of the recovery story has already been reflected in the share price after a strong run since last November. Article Title
- Negative Sentiment: Vodafone missed analyst expectations on both EPS and revenue, highlighting that the turnaround is still uneven and that near-term execution remains challenging.
- Negative Sentiment: Germany remains a weak spot, with rising churn and intense competition weighing on growth, while the planned VodafoneThree stake purchase could increase leverage and constrain capital returns.
Analyst Ratings Changes
Several equities research analysts have recently weighed in on the company. Zacks Research raised Vodafone Group from a “hold” rating to a “strong-buy” rating in a report on Wednesday, April 29th. Weiss Ratings downgraded Vodafone Group from a “hold (c-)” rating to a “sell (d+)” rating in a report on Monday, May 4th. Finally, UBS Group raised Vodafone Group from a “strong sell” rating to a “hold” rating in a report on Monday, March 23rd. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, two have given a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat.com, Vodafone Group currently has an average rating of “Hold” and an average target price of $72.00.
Get Our Latest Analysis on Vodafone Group
Institutional Inflows and Outflows
Hedge funds have recently made changes to their positions in the company. Caitong International Asset Management Co. Ltd increased its position in shares of Vodafone Group by 81.8% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 2,651 shares of the cell phone carrier’s stock valued at $35,000 after buying an additional 1,193 shares in the last quarter. CIBC Private Wealth Group LLC increased its position in shares of Vodafone Group by 38.0% in the third quarter. CIBC Private Wealth Group LLC now owns 3,435 shares of the cell phone carrier’s stock valued at $40,000 after buying an additional 946 shares in the last quarter. Smartleaf Asset Management LLC increased its position in shares of Vodafone Group by 98.1% in the second quarter. Smartleaf Asset Management LLC now owns 7,372 shares of the cell phone carrier’s stock valued at $78,000 after buying an additional 3,651 shares in the last quarter. Atlas Capital Advisors Inc. purchased a new stake in Vodafone Group during the 4th quarter worth about $81,000. Finally, Parallel Advisors LLC increased its position in Vodafone Group by 14.0% during the 3rd quarter. Parallel Advisors LLC now owns 8,640 shares of the cell phone carrier’s stock worth $100,000 after purchasing an additional 1,059 shares in the last quarter. Hedge funds and other institutional investors own 7.84% of the company’s stock.
Vodafone Group Company Profile
Vodafone Group plc is a British multinational telecommunications company headquartered in London. It provides a wide range of communications services to consumer and enterprise customers, including mobile voice and data, fixed-line broadband, cable and pay-TV, and wholesale network services. The company also offers business-oriented solutions such as cloud and hosting, managed networks, unified communications, and Internet of Things (IoT) connectivity and platform services.
Vodafone operates through a combination of wholly owned subsidiaries, joint ventures and partner arrangements across multiple countries, with a particularly large presence in Europe and in several African markets.
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