Verizon Communications Set to Report First-Quarter Earnings
Key Takeaways
- Verizon Communications will report first-quarter earnings on Monday, ahead of the opening bell.
- Analysts expect Verizon to report a year-over-year increase in revenue, but drops in income and earnings per share (EPS).
- Investors will be watching to see which direction Verizon’s broadband and wireless service subscriber numbers could trend over the rest of 2024.
Verizon Communications (VZ) is gearing up to announce its first-quarter earnings before the opening bell on Monday. The telecommunications giant has been actively working on expanding its 5G network and broadband internet businesses.
Analysts are anticipating Verizon to post $33.2 billion in revenue, along with $4.61 billion in net income for diluted earnings per share (EPS) of $1.09, according to estimates compiled by Visible Alpha. Meeting these estimates would signify an increase in revenue compared to the first quarter of 2023, although income and EPS are expected to decrease year-over-year.
In the first quarter of last year, Verizon reported $32.91 billion in revenue and net income of $4.91 billion, translating to $1.17 per share. During that quarter, the company added 437,000 broadband customers, marking the highest quarterly gain in over a decade.
This upcoming earnings report will be the first since Verizon disclosed a goodwill impairment charge of nearly $6 billion related to the reduction in value of its Verizon Business unit at the end of 2023.
| Analyst Estimates for Q1 2024 | Q4 2023 | Q1 2023 | |
| Revenue | $33.2 billion | $35.13 billion | $32.91 billion |
| Diluted EPS | $1.09 | ($0.64) | $1.17 |
| Net Income | $4.61 billion | ($2.71 billion) | $4.91 billion |
Key Metric: Consumer Wireless Subscribers
Consumer wireless service has historically been a significant part of Verizon’s business, accounting for over half of its revenue despite the growth in broadband internet and Verizon Business segments.
In the first quarter of 2023, revenue from Verizon’s wireless service was $18.9 billion. The company attributed a slight negative impact on revenue to the shutdown of its 3G network at the end of 2022, resulting in the loss of approximately 1.1 million retail connections.
Verizon continues its 5G rollout, with its 5G Ultra Wideband mobile network being accessible to over 200 million people across the U.S.
Business Spotlight: Broadband Service
Verizon saw an addition of 413,000 broadband customers in the final quarter of 2023, marking the fifth consecutive quarter with over 400,000 net customer additions.
By the end of 2023, the broadband segment of Verizon’s business had amassed a subscriber base exceeding 3 million individuals. In its fourth-quarter earnings report in January, Verizon expressed confidence in surpassing 5 million broadband subscribers by the end of the following year.
Following Verizon’s earnings announcement, investors will turn their attention to reports from major competitors such as AT&T (T) and T-Mobile (TMUS) later in the week.
As of midday Friday, Verizon shares have appreciated by close to 7% year-to-date.
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By keeping an eye on key metrics like revenue, net income, and subscriber numbers, investors can gain valuable insights into Verizon Communications’ performance and future prospects in the telecommunications industry.
