Yahoo Finance Analysts Have Made A Financial Statement On Verizon Communications Inc.'s (NYSE:VZ) First-Quarter Report
The quarterly results for Verizon Communications Inc. (NYSE:VZ) were released last week, making it a good time to revisit its performance. Verizon Communications reported in line with analyst predictions, delivering revenues of US$33b and statutory earnings per share of US$1.09, suggesting the business is executing well and in line with its plan. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
See our latest analysis for Verizon Communications
Following last week's earnings report, Verizon Communications' 21 analysts are forecasting 2024 revenues to be US$135.0b, approximately in line with the last 12 months. Per-share earnings are expected to soar 68% to US$4.51. Before this earnings report, the analysts had been forecasting revenues of US$135.6b and earnings per share (EPS) of US$4.53 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
There were no changes to revenue or earnings estimates or the price target of US$45.29, suggesting that the company has met expectations in its recent result. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Verizon Communications analyst has a price target of US$54.00 per share, while the most pessimistic values it at US$38.86. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 1.0% growth on an annualised basis. That is in line with its 0.9% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 1.8% annually. So although Verizon Communications is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Verizon Communications going out to 2026, and you can see them free on our platform here.
However, before you get too enthused, we've discovered 5 warning signs for Verizon Communications that you should be aware of.
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This article by Simply Wall St is general in nature. We provide commentary 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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
