Verizon Q4 Earnings Report Preview: Key factors to watch

Verizon, a telecommunications powerhouse listed on the New York Stock Exchange under the ticker symbol VZ, is set to release its fourth-quarter earnings report this Friday before the markets open. Following a quarter where they fell short of analysts’ revenue projections by 1.2%, reporting a revenue of $33.82 billion, a 1.5% increase year over year, Verizon experienced a mixed bag of results. While they exceeded analysts’ earnings per share estimates, there was a slight deviation from revenue expectations. The company lost -17,000 customers during the period, bringing their total customer base to 146.1 million.

As we look ahead to the upcoming earnings release, analysts are forecasting a 1.3% year-on-year revenue growth for Verizon, estimating revenues to reach $36.14 billion. This projection aligns closely with the 1.6% growth recorded in the corresponding quarter of the previous year. Adjusted earnings per share are anticipated to come in at $1.06. Analysts who cover Verizon have largely reiterated their forecasts in the past month, indicating their expectation of stability for the company as they approach their earnings announcement.

Verizon has fallen short of Wall Street’s revenue forecasts on four occasions over the previous two years. By examining the performance of Verizon’s peers in the consumer discretionary sector, some insights can be gleaned regarding what may be expected from the upcoming report. Notably, AT&T achieved a 3.6% revenue growth year over year, surpassing analysts’ projections by 2.1%, while Nike reported flat revenue, which exceeded estimates by 1.7%. Following its results, Nike experienced a 10.5% decline in its stock price.

Leading up to the earnings release, investors in the consumer discretionary sector have displayed consistent composure, with average share prices decreasing by 1.1% over the last month. In comparison, Verizon’s stock price has dipped by 3.1% during the same period. Analysts have set an average price target of $47.02 for Verizon, signaling potential growth from its current price of $39.48.

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