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Analysts have made a financial statement on Verizon Communications Inc.’s (NYSE:VZ) second-quarter report.
English Verizon Communications Inc. (NYSE:VZ) shareholders are probably feeling a little disappointed, as its shares fell 3.7% to $40.09 in the week following its latest Q2 results. It looks like the results were a bit of a downer overall. While revenues of $33 billion were in line with analysts’ forecasts, statutory profits were lower than expected, missing estimates by 3.0% to hit $1.09 per share. Earnings are an important time for investors, as they can track a company’s performance, see what analysts are predicting for the year ahead, and see if there’s been a shift in sentiment towards the company. So, we’ve rounded up the latest post-earnings statutory consensus estimates to see what might be in store for the year ahead.
See our latest analysis for Verizon Communications
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Going by the latest results, Verizon Communications’ 23 analysts currently expect 2024 revenues to be $135.2 billion, roughly in line with the last 12 months. Statutory earnings per share are expected to rise 66% to $4.45. Prior to this earnings report, analysts had been forecasting revenues of $135.5 billion and earnings per share (EPS) of $4.48 in 2024. The consensus analysts don’t appear to have seen anything in these results that would change their view of the business, given that there was no major change to their estimates.
There were no changes to revenue or earnings estimates or the price target of $46.32, suggesting the company met expectations in its recent earnings. The consensus price target is just an average of individual analyst targets, so it can be helpful to see how wide the range of underlying estimates is. The most bullish analyst on Verizon Communications has a price target of $55.00 per share, while the most bearish values it at $38.76. This shows that there is still some diversity in estimates, but analysts don’t appear to be as sharply divided on the stock as if it could be a make-or-break situation.
Of course, another way to look at these predictions is to put them into context with the current situation. industry itself. Analysts definitely expect Verizon Communications’ growth to accelerate, with its forecast annualized growth of 1.4% through the end of 2024 ranking favorably alongside its historical growth of 0.9% per year over the past five years. In contrast, our data suggests that other companies (with analyst coverage) in a similar industry are expected to grow their revenues by 2.7% per year. So it’s clear that despite the acceleration in growth, Verizon Communications is expected to grow significantly slower than the industry average.
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The bottom line
The most important thing to take away is that there has been no major change in sentiment, with analysts reconfirming that the business is performing in line with their previous EPS estimates. Fortunately, analysts have also reconfirmed their revenue estimates, suggesting that it is performing in line with expectations. Although our data suggests that Verizon Communications’ revenue is expected to underperform the broader industry. The consensus price target held steady at $46.32, with the latest estimates not being enough to have an impact on their price targets.
That said, the company’s long-term earnings trajectory is far more important than what happens next year. At Simply Wall St, we have a full range of analyst estimates for Verizon Communications through 2026, and you can see them for free on our platform here..
It’s also worth noting that we discovered 4 Warning Signs for Verizon Communications that you need to take into consideration.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only 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 into account your objectives or financial situation. Our aim is to bring you long-term focused analysis, driven by fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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