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Verizon (New York Stock Exchange:VZ) is scheduled to announce fourth-quarter earnings results on Tuesday, January 24, before the market opens.
The consensus EPS estimate is $1.19 (-9.2% Y/Y) and the consensus revenue estimate is $35.14 billion (+3.0% Y/Y).
Upon the past 3 months, EPS estimates have seen 0 upward revisions and 17 down. Income estimates have had 4 upward revisions and 8 downward revisions.
The telco has faced more challenges than peers like AT&T (T), with drops in consumer phones amid rising rates. As a result, the stock has fallen about -24% in the past year, while AT&T has risen by about the same percentage.
UBS suggested that Verizon (VZ) will lose consumer subscribers again in 2023, but the company will be “more nimble” while Truist expects the rollout of its fixed wireless access program will likely “scale slower than originally expected” as that the company works to preserve cash. .
At Citi’s investment conference earlier in the year, Verizon (VZ) CEO Hans Vestberg said the company had net subscriber additions in the fourth quarter and would cut its 2023 spending plans amid the weak global economy and when its 5G rollout is complete.
The positive net adds in the fourth quarter will mark a return of three-quarters of consumer postpaid telephony net losses and would have been driven by the high activity of the holiday season and price increases in the summer.
Investors will be interested in whether Verizon will improve wireless revenue trends in the fourth quarter and its outlook for the new year, as well as plans for additional price increases.
Over the last 2 years, VZ has beaten EPS estimates 88% of the time and has beaten revenue estimates 75% of the time.
