Verizon Communications Inc. (VZ), headquartered in New York, operates as a telecommunication company providing communications, technology, information, and entertainment products and services to its customers. Valued at $166.7 billion by market cap, the company offers wireless services through its 4G LTE and 5G networks, broadband internet via its Fios fiber-optic service, and traditional DSL options, IoT products, and enterprise solutions. The telecom giant is expected to announce its fiscal fourth-quarter earnings for 2024 before the market opens on Friday, Jan. 24.
Ahead of the event, analysts expect VZ to report a profit of $1.11 per share on a diluted basis, up 2.8% from $1.08 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect VZ to report EPS of $4.61, down 2.1% from $4.71 in fiscal 2023. However, its EPS is expected to rise 2.4% year over year to $4.72 in fiscal 2025.
VZ stock has underperformed the S&P 500’s ($SPX) 27.2% gains over the past 52 weeks, with shares down 1.5% during this period. Similarly, it underperformed the Communication Services Select Sector SPDR Fund’s (XLC)37.3% gains over the same time frame.
VZ's stagnated customer growth indicates its struggles to secure new contracts and potentially signals intense competition or market saturation.
On Oct. 22, VZ shares closed down by 5% after reporting its Q3 results. Its adjusted EPS of $1.19 surpassed Wall Street expectations of $1.18. The company’s revenue was $33.3 billion, falling short of Wall Street forecasts of $33.5 billion. VZ expects its full-year adjusted EPS to be between $4.50 and $4.70.
Analysts’ consensus opinion on VZ stock is moderately bullish, with a “Moderate Buy” rating overall. Out of 24 analysts covering the stock, seven advise a “Strong Buy” rating, two suggest a “Moderate Buy,” 14 give a “Hold,” and one recommends a “Strong Sell.” VZ's average analyst price target is $46.53, indicating a potential upside of 17.5% from the current levels.
