New York-based Verizon Communications Inc. (VZ) provides communications, technology, information, and entertainment products and services to consumers, businesses, and governmental entities. Valued at $175.69 billion by market cap, the company offers wireless and wireline communications services and products and network access to deliver IoT services and products. The telecommunications major is expected to announce its fiscal second-quarter earnings for 2024 before the market opens on Monday, July 22.
Ahead of the event, analysts expect VZ to report a profit of $1.15 per share on a diluted basis, down 5% from $1.21 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports. During the previous quarter, VZ’s fixed wireless net additions were 151,000, the best quarterly result to date.
For fiscal 2024, analysts expect VZ to report EPS of $4.59, down 2.6% from $4.71 in fiscal 2023.
VZ stock has underperformed the S&P 500’s ($SPX) 22.9% returns over the past 52 weeks, with its shares gaining 11.5% during this period. However, it has outperformed the US Telecommunications iShares ETF’s (IYZ) 1.7% losses over the same time frame.
On May 30, VZ shares closed up more than 2% after the company was awarded a contract by the US Navy to provide wireless devices and services valued at $2.67 billion over ten years.
On Apr. 22, VZ shares closed down more than 4% after the company reported its Q1 results. Its operating revenue was $33 billion, weaker than the consensus of $33.2 billion. Its adjusted EPS was $1.15, down from $1.20 in the prior year quarter. Total wireless service revenue rose 3.3% year over year to $19.5 billion, driven by pricing initiatives and continued growth in the fixed wireless broadband segment. Its consumer postpaid losses were 158,000 subscribers.
The consensus opinion on VZ stock is bullish, with a “Moderate Buy” rating overall. Out of 22 analysts covering the stock, seven advise a “Strong Buy” rating, three suggest a “Moderate Buy” rating, and the remaining 12 analysts give a “Hold” rating.
The average analyst price target for VZ is $44.92, indicating a potential upside of 7.6% from the current levels.
On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
