Telefonica Brasil (NYSE:VIV) Posts Earnings Results, Misses Estimates By $0.02 EPS

Telefonica Brasil (NYSE:VIV) issued its quarterly earnings data on Monday. The Wireless communications provider reported $0.15 EPS for the quarter, missing analysts’ consensus estimates of $0.17 by ($0.02), FiscalAI reports. The company had revenue of $2.98 billion for the quarter, compared to analyst estimates of $2.98 billion. Telefonica Brasil had a net margin of 10.42% and a return on equity of 9.15%.

Here are the key takeaways from Telefonica Brasil’s conference call:

• Strong financial performance: Total revenue rose 7.4% YoY, EBITDA grew 8.9% with a 40.2% margin, net income was up 19.2% to BRL 1.3bn, operating cash flow was BRL 4.2bn and free cash flow BRL 2.2bn.
• Customer and ARPU momentum: Postpaid accesses grew 6.9% to 72.1m (69.5% of mobile base), total mobile 103.7m, fiber connections reached 8.0m (homes passed 31.5m), with mobile ARPU at a record +5.7% and postpaid churn at 1.0%.
• Revenue mix shifting to higher‑value services: New business now represents 12.1% of revenues, B2B revenues rose 11.8% (digital B2B +23.8%), while consumer electronics and health offerings posted double‑digit growth, supporting diversification and higher monetization per customer.
• Capital allocation and balance sheet strength: Management reaffirmed at least BRL 7bn of distributions for 2026, launched a BRL 1bn buyback, and reported a stronger net cash position with net debt/EBITDA ~0.4x.
• Cost and execution risks: Cost of goods and services rose 12% (handset/electronics and new businesses), bad debt was ~2% (impacted by one B2B customer), and timing of copper asset sales and ongoing tower/lease negotiations create execution and timing uncertainties.

Telefonica Brasil Price Performance

Shares of Telefonica Brasil stock traded down $0.73 during midday trading on Monday, hitting $14.87. 704,847 shares of the company were exchanged, compared to its average volume of 964,722. The company has a debt-to-equity ratio of 0.22, a current ratio of 1.00 and a quick ratio of 0.94. The firm has a market cap of $24.18 billion, a P/E ratio of 21.24, a PEG ratio of 0.97 and a beta of 0.63. Telefonica Brasil has a 52 week low of $9.41 and a 52 week high of $17.25. The firm has a 50 day simple moving average of $16.00 and a 200-day simple moving average of $14.13.

Telefonica Brasil Announces Dividend

The business also recently announced a dividend, which will be paid on Tuesday, July 21st. Investors of record on Friday, May 22nd will be given a dividend of $0.4562 per share. The ex-dividend date is Friday, May 22nd. Telefonica Brasil’s dividend payout ratio (DPR) is 65.71%.

Hedge Funds Weigh In On Telefonica Brasil

Hedge funds and other institutional investors have recently modified their holdings of the stock. Rhumbline Advisers lifted its position in shares of Telefonica Brasil by 337.7% during the 1st quarter. Rhumbline Advisers now owns 4,233 shares of the Wireless communications provider’s stock worth $37,000 after buying an additional 3,266 shares during the period. Arax Advisory Partners lifted its position in shares of Telefonica Brasil by 54.4% during the 4th quarter. Arax Advisory Partners now owns 3,773 shares of the Wireless communications provider’s stock worth $45,000 after buying an additional 1,330 shares during the period. Advisors Asset Management Inc. bought a new position in shares of Telefonica Brasil during the 1st quarter worth approximately $52,000. EverSource Wealth Advisors LLC lifted its position in shares of Telefonica Brasil by 214.0% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 4,766 shares of the Wireless communications provider’s stock worth $54,000 after buying an additional 3,248 shares during the period. Finally, AlTi Global Inc. bought a new position in shares of Telefonica Brasil during the 4th quarter worth approximately $130,000. Institutional investors own 5.16% of the company’s stock.

Analyst Ratings Changes

A number of analysts have issued reports on the company. UBS Group lowered Telefonica Brasil from a “buy” rating to a “sell” rating in a report on Wednesday, March 11th. Scotiabank raised their target price on Telefonica Brasil from $12.50 to $15.30 and gave the company a “sector perform” rating in a report on Monday, March 30th. Bradesco Corretora downgraded Telefonica Brasil to a “neutral” rating in a research report on Tuesday, April 28th. Wall Street Zen upgraded Telefonica Brasil from a “buy” rating to a “strong-buy” rating in a research report on Sunday, January 11th. Finally, Barclays set a $16.50 price objective on Telefonica Brasil and gave the stock an “equal weight” rating in a research report on Friday, April 17th. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, four have issued a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus target price of $14.08.

About Telefonica Brasil

Telefônica Brasil SA, commonly marketed under the Vivo brand, is one of Brazil’s largest telecommunications providers, offering a broad range of consumer and enterprise communications services. The company’s core activities include mobile voice and data services, fixed-line telephony, broadband internet (including fiber-to-the-home), and pay-TV solutions. It also provides ICT and managed services for business customers, such as cloud, data center, connectivity, Internet of Things (IoT) and security solutions.

Vivo operates a nationwide network across Brazil and serves both individual consumers and corporate clients.