- Verizon reported an adjusted EPS of $1.10, surpassing the estimate of $1.09 and last year’s $1.08.
- Adjusted EBITDA came in at $11.9 billion, slightly below the estimate of $12.02 billion but showing a year-over-year increase of 1.7%.
- Operating revenue was noted at $35.7 billion, exceeding the anticipated $35.33 billion.
- Wireless Equipment revenue reached $7.5 billion, above the expected $7.21 billion.
- Consumer revenue totaled $27.6 billion, outperforming the estimate of $27.3 billion.
- Business revenue matched estimates at $7.5 billion.
- Wireless Service revenue amounted to $20 billion, slightly above the estimate of $19.96 billion.
- FIOS Internet subscribers grew by 51,000, which is below the previous year-to-year increase of 7.3% but above the estimated 44,675.
- Verizon forecasts wireless service revenue growth of 2% to 2.8% for the year.
- The company anticipates adjusted EBITDA growth of 2% to 3.5% and maintains a capital expenditure forecast between $17.5 billion and $18.5 billion.
- Verizon projects a 0% to 3% growth in adjusted EPS for 2025.
- 4Q total postpaid phone net additions were 568,000, showing an increase from last year’s 449,000.
- Broadband net additions for the quarter were 408,000.
- Fourth-quarter fixed wireless access net additions were 373,000, aiming for 8 million to 9 million subscribers by 2028.
- The company incurred severance payments of approximately $600 million related to a voluntary separation program in the fourth quarter.
- Operating cash flow for 2024 includes a one-time contribution of about $2 billion from Verizon’s tower transaction with Vertical Bridge.
- Wireless service revenue growth in 4Q was primarily driven by recent pricing actions, sales of perks and add-ons, and growth in fixed wireless access.
- For 2025, Verizon expects a free cash flow ranging from $17.5 billion to $18.5 billion and cash flow from operations between $35.0 billion and $37.0 billion.
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Verizon Communications on Smartkarma
Analysts on Smartkarma, such as Baptista Research, have been closely monitoring Verizon Communications Inc. and providing valuable insights. In a recent report titled “Verizon Communications Inc.: Exploitation of B2B Opportunities Through Fiber and Network Assets & Other Major Drivers,” Baptista Research analyzed Verizon’s third-quarter earnings and strategic developments. The report highlighted CEO Hans Vestberg’s emphasis on significant achievements and strategic advancements, showcasing the company’s strong financial performance with a 2.7% growth in wireless service revenue.
Furthermore, Baptista Research‘s report “Verizon Communications: New Brand Strategy & Expansion of Fixed Wireless Access (FWA) Are The Highlights! – Major Drivers” examines Verizon’s successful second quarter of 2024. The report praised the company’s strong results, including a 3.5% year-over-year increase in wireless service revenue, a 2.8% rise in adjusted EBITDA, and a 3% growth in free cash flow. Analysts also noted that Verizon’s customer-centric initiatives like myPlan and Verizon Business Complete are driving growth and enhancing customer relationships, reflecting the company’s commitment to innovation and connectivity.
A look at Verizon Communications Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 5 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Verizon Communications Inc., with its well-rounded Smartkarma Smart Scores, is positioned favorably for long-term growth and stability. A high Dividend score of 5 reflects the company’s strong commitment to rewarding its shareholders with consistent payouts, indicating a stable financial position. Additionally, a solid Value score of 4 suggests that Verizon is trading at an attractive valuation relative to its earnings and assets.
While the company’s Growth and Momentum scores are moderate at 3, Verizon’s resilience in the face of market challenges is noted with a score of 2. This resilience, coupled with its diverse range of telecommunications services, including wireline, wireless, and internet, positions Verizon well for sustained success in the ever-evolving industry landscape.
Summary: Verizon Communications Inc. is an integrated telecommunications company offering a wide array of services encompassing wireline voice and data, wireless, Internet, and government network services. With strong scores in dividend payouts and overall value, combined with a resilient business model, Verizon appears primed for long-term success.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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