Earnings Alerts

Verizon Communications (VZ) Earnings: 2Q Adjusted EPS Matches Estimates at $1.15

  • Adjusted EPS for Q2 2024 matched estimates at $1.15, down from $1.21 year-over-year.
  • Operating revenue came in at $32.8 billion, slightly below the $33.07 billion estimate.
  • Consumer revenue was $24.9 billion, slightly below the $25.16 billion estimate.
  • Business revenue totaled $7.3 billion, close to the $7.35 billion estimate.
  • Wireless service revenue was $19.8 billion, matching the $19.79 billion estimate.
  • FIOS Internet subscribers grew by 28,000, short of the 38,089 estimate.
  • Adjusted EBITDA was $12.3 billion, slightly above the $12.29 billion estimate.
  • Year forecast remains unchanged with adjusted EPS expected to be between $4.50 to $4.70, the estimate being $4.57.
  • Wireless service revenue growth is still expected to be between +2% to +3.5%.
  • Capital expenditures are projected to be $17 billion to $17.5 billion, the estimate being $17.34 billion.
  • Total broadband net additions were 391,000 for the quarter.
  • Total fixed wireless net additions were 378,000 for Q2.
  • Fixed wireless revenue for Q2 was $514 million, an increase of over $200 million year-over-year.
  • Consumer segment reported 624,000 wireless retail prepaid net losses in Q2, including 410,000 related to the Affordable Connectivity Program shutdown.

Verizon Communications on Smartkarma

Analysts at Baptista Research on Smartkarma have been closely covering Verizon Communications, providing valuable insights into the company’s performance and future prospects. In their report titled “Verizon Communications: What Are The Biggest AI & 5G Use Cases That Can Benefit Them? – Major Drivers,” Baptista Research highlighted Verizon’s strong start to the fiscal year driven by strategic focus and operational performance. The report emphasized the positive momentum across different segments, particularly in Verizon’s Consumer business, which showed improvements in postpaid phone net adds and broadband subscriber base growth, indicating a promising outlook for the company.

In another analysis by Baptista Research, titled “Verizon Communications – Increasing Contribution from Fixed Wireless Access & Other Major Drivers,” the analysts delved into Verizon’s recent results, noting a 3.2% year-over-year growth in wireless service revenue. Despite the positive results, the report mentioned the importance of developing a balanced investment thesis for Verizon, considering both the strengths and weaknesses observed in the company’s fourth-quarter performance. Overall, these research reports offer valuable insights for investors looking to understand Verizon Communications‘ trajectory in the telecommunications industry.


A look at Verizon Communications Smart Scores

FactorScoreMagnitude
Value3
Dividend5
Growth3
Resilience2
Momentum4
OVERALL SMART SCORE3.4

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. is positioned well for the long term, with its highest score in Dividend indicating a strong ability to provide consistent returns to its investors. The company’s robust dividend score reflects its stable and reliable payment history, making it an attractive option for income-seeking investors looking for steady returns over time. Moreover, Verizon’s solid Momentum score suggests positive market sentiment and a potential for upward price movement based on recent performance.

While Verizon scores moderately in Value and Growth, indicating a fair valuation and moderate potential for future expansion, its Resilience score of 2 may signal some vulnerability to economic downturns or industry challenges. Investors considering Verizon for the long term should monitor its ability to navigate market uncertainties. Overall, with its strong dividend and momentum scores, Verizon remains a solid choice for investors seeking income and growth opportunities in the telecommunications sector.


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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