Verizon, a leading wireless provider, is set to announce its Q1 2024 financial results on April 22. Analysts project revenues of approximately $33.3 billion for the quarter, in line with expectations but down 1% from the previous year. Earnings are estimated at $1.13 per share, slightly above the consensus of $1.12 per share.
One key driver of Verizon's performance is its progress in the 5G arena. The company has been addressing its 5G spectrum limitations by acquiring and deploying new C-band spectrum, leading to improved customer numbers. In Q4 2023, Verizon added 449,000 postpaid phone customers, a significant increase from the previous year. Additionally, Verizon's myPlan program, offering customizable features like video streaming subscriptions, has been well-received by customers, potentially boosting revenues and margins.
Verizon's expansion into fixed wireless broadband has also been successful, with the company adding 375,000 connections in the previous quarter, bringing its total subscriber base to over 3 million. This growth in broadband services is contributing to incremental revenue growth for the company.
Despite these positive developments, Verizon's stock has experienced a decline of 35% over the past three years, underperforming the market. However, analysts remain cautiously optimistic about the stock, with a price estimate of $43, reflecting a reasonable valuation at 9x consensus 2024 earnings. Verizon also offers an attractive forward dividend yield of over 6%.
Looking ahead, uncertainties in the macroeconomic environment, such as high oil prices and elevated interest rates, could impact Verizon's performance. Analysts are monitoring whether Verizon can leverage its 5G advancements to attract more subscribers and drive revenue growth in the coming months.
