Here’s why the Vodafone share price popped after earnings

Vodafone share price popped and reached its highest level since August 2022 as the company’s German business returned to growth. VOD soared to a high of 94p, up by about 67% from its lowest level in 2024. 

Vodafone share price rises after earnings

Vodafone Group was one of the best-performing companies in the FTSE 100 Index on Tuesday as it jumped by over 6% in its best day in months. 

This surge happened after the company published its financial results, which provided more color on its performance. Most importantly, the company said that its German business returned to growth in the last half of the year

The results showed that Germany’s total revenue rose by 7.3% in the first half of the year. This growth was because of its strong service revenue and the ongoing consolidation of Three UK, a move that created a large telecom giant in the UK. 

The company also said that its German revenue rose by 0.5%, the first time it happened in a while. Its growth was because of the TV law change and its higher wholesale revenue in the country. 

Vodafone’s business had a 1.2% organic growth in the UK because of its Three business integration. Also, its Africa business experienced double-digit revenue growth, while its business segment had 2.9%. In a statement, the CEO said:

“Based on our stronger performance, we are now expecting to deliver at the upper end of our guidance range for both profit and cash flow, and as our anticipated multi-year growth trajectory is now underway, we are introducing a new progressive dividend policy.”

In addition to its dividend, the company continued repurchasing it stock. It has now completed its €3 billion share buybacks and is on track to repurchase €1 billion more. 

The company is implementing more strategies to accelerate its turnaround. For example, it is strengthening its market in key markets like Romania and boosting its market share in the UK, where it acquired Three.

Vodafone stock price technical analysis 

VOD stock price chart | Source: TradingView

The weekly chart shows that the VOD share price has been in a strong bull run in the past few years. It has jumped from a low of 56p in January last year to 95p today. 

Most recently, it moved above the important resistance level at 89.60p, its highest level on August 26. This price was slightly above the 61.8% Fibonacci Retracement level. 

It formed a golden cross pattern in September as the 50-week and 200-week Exponential Moving Averages (EMA) crossed each other. This pattern is one of the most bullish signs in technical analysis.

The Relative Strength Index (RSI) and the MACD indicators have continued rising this year. Therefore, the most likely scenario is where the Vodafone stock price keeps rising as bulls target the key resitance level at 107p, the highest point in 2021. A move below the support at 89p will invalidate the bullish view.

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