Verizon Communications Inc. (NYSE:VZ) shareholders are probably feeling a little disappointed, since its shares fell 3.7% to US$40.09 in the week after its latest second-quarter results. It looks like the results were a bit of a negative overall. While revenues of US$33b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 3.0% to hit US$1.09 per share. Earnings are an important time for investors, as they can track a company’s performance, look at what the analysts are forecasting for next year, and see if there’s been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
View our latest analysis for Verizon Communications
Taking into account the latest results, Verizon Communications’ 23 analysts currently expect revenues in 2024 to be US$135.2b, approximately in line with the last 12 months. Statutory earnings per share are predicted to soar 66% to US$4.45. Before this earnings report, the analysts had been forecasting revenues of US$135.5b and earnings per share (EPS) of US$4.48 in 2024. The consensus analysts don’t seem to have seen anything in these results that would have changed their view on the business, given there’s been no major change to their estimates.
There were no changes to revenue or earnings estimates or the price target of US$46.32, suggesting that the company has met expectations in its recent result. The consensus price target is just an average of individual analyst targets, so – it could be handy to see how wide the range of underlying estimates is. The most optimistic Verizon Communications analyst has a price target of US$55.00 per share, while the most pessimistic values it at US$38.76. This shows there is still a bit of diversity in estimates, but analysts don’t appear to be totally split on the stock as though it might be a success or failure situation.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Verizon Communications’ growth to accelerate, with the forecast 1.4% annualised growth to the end of 2024 ranking favourably alongside historical growth of 0.9% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 2.7% per year. So it’s clear that despite the acceleration in growth, Verizon Communications is expected to grow meaningfully slower than the industry average.
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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it’s tracking in line with expectations. Although our data does suggest that Verizon Communications’ revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$46.32, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company’s earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Verizon Communications going out to 2026, and you can see them free on our platform here..
It is also worth noting that we have found 4 warning signs for Verizon Communications that you need to take into consideration.
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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.
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