Verizon’s Earnings Report Looms: Analysts Predict Steady Growth
Verizon Communications Inc. (VZ), based in New York, is a major player in the telecommunication industry, offering a range of services that include wireless communication, internet through Fios fiber-optic technology, traditional DSL options, IoT products, and enterprise solutions. Currently valued at $166.7 billion based on market capitalization, the telecom leader is set to reveal its fiscal fourth-quarter earnings for 2024 before the market opens on Friday, January 24.
Analysts Anticipate Q4 Profit Increase
As the earnings announcement approaches, analysts predict Verizon will report a profit of $1.11 per share on a diluted basis. This figure represents a 2.8% increase from $1.08 per share reported in the same quarter last year. The company has a recent history of exceeding Wall Street’s earnings per share (EPS) projections, achieving this feat in its last four quarterly reports.
Yearly Outlook: Mixed Signals
Looking at the entire fiscal year, analysts foresee VZ declaring an EPS of $4.61, which is a slight decline of 2.1% compared to $4.71 in fiscal 2023. However, projections show a rebound with EPS expected to increase by 2.4% to $4.72 in fiscal 2025.
Stock Performance Falls Short
Verizon’s stock has struggled over the past year, underperforming the S&P 500, which gained 27.2%. Currently, VZ shares are down 1.5%, lagging behind the Communication Services Select Sector SPDR Fund’s (XLC) impressive 37.3% increase during the same period.
Customer Growth Challenges Ahead
Verizon’s stagnant customer growth raises concerns about its ability to attract new contracts, which may indicate fierce competition or possible market saturation.
On October 22, VZ’s shares dropped by 5% following the announcement of its Q3 results. The adjusted EPS reached $1.19, slightly surpassing Wall Street’s expectation of $1.18. However, the company’s revenue of $33.3 billion was below the anticipated $33.5 billion. Looking ahead, VZ projects its full-year adjusted EPS to fall between $4.50 and $4.70.
Analysts Hold Moderate Optimism
The consensus among analysts regarding VZ stock is moderately positive, reflected in an overall “Moderate Buy” rating. Out of 24 analysts tracking the stock, seven advise a “Strong Buy,” two recommend a “Moderate Buy,” 14 suggest a “Hold,” and one issues a “Strong Sell.” The average price target among analysts sits at $46.53, suggesting a possible upside of 17.5% from current trading levels.
On the date of publication, Neha Panjwani did not hold positions in any of the securities mentioned in this article. The information provided is for informational purposes only. You can view the Barchart Disclosure Policy here.
The views expressed in this article are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
