Core Viewpoint - Goldman Sachs analyst James Schneider maintains a Buy rating on Verizon Communications Inc with a price target of $52, despite mixed results in subscriber metrics [1][5]. Financial Performance - Verizon reported total revenue of $33.5 billion, aligning with analyst estimates of $33.4 billion and the Street's estimate of $33.3 billion [1]. - Adjusted EPS was $1.19, surpassing the analyst estimate of $1.14 and the consensus of $1.15 [1]. - Total wireless service revenue reached $20.8 billion, reflecting a year-over-year increase of 2.7%, consistent with analyst estimates of $20.83 billion and above the Street's estimate of $20.44 billion [1]. Subscriber Metrics - Postpaid phone net additions were -289k, significantly below the analyst estimate of -240k and the Street's estimate of -199k [2]. - Consumer revenue was $25.6 billion, matching analyst estimates of $25.56 billion and the Street's estimate of $25.45 billion [2]. - Consumer postpaid phone net additions were -356k, underperforming against the analyst estimate of -320k and the Street's estimate of -289k [2]. - Consumer fixed wireless net additions were +199k, in line with the analyst estimate of +200k and the Street's estimate of +195k [2]. Business Outlook - Verizon reiterated its financial guidance for 2025, projecting wireless service revenue growth of 2%-2.8%, which translates to $83.7-$84.4 billion, compared to the analyst estimate of $84.2 billion and the Street's estimate of $82.8 billion [4]. - Adjusted EPS growth guidance is set at 0%-3%, implying a range of $4.59-$4.73, compared to the analyst and Street estimate of $4.68 [4]. Market Reaction - Verizon stock increased by 1.12% to $43.44 at the time of publication [7].

Group 1 - Verizon's stock is a staple for income-focused investors, having raised its dividends for 18 consecutive years [1] - The company has established a reputation for its defensive business model rooted in essential telecommunications services [1]

Financial Performance - Verizon Communications reported revenue of $33.49 billion for the quarter ended March 2025, reflecting a 1.5% increase year-over-year [1] - Earnings per share (EPS) for the quarter was $1.19, up from $1.15 in the same quarter last year, indicating a positive trend [1] - The reported revenue exceeded the Zacks Consensus Estimate of $33.33 billion by 0.48%, while the EPS also surpassed the consensus estimate of $1.15 by 3.48% [1] Key Metrics - Wireless Retail postpaid connections per account remained stable at 3, matching the average estimate [4] - The churn rate for Wireless Retail postpaid was 1.5%, consistent with analyst expectations [4] - Consumer Wireless Retail postpaid Average Revenue Per Account (ARPA) was $146.46, exceeding the average estimate of $143.87 [4] - Net subscriber additions for Retail postpaid phones were -356 thousand, worse than the estimated -207.89 thousand [4] - Business operating revenues were reported at $7.29 billion, slightly below the estimated $7.36 billion, representing a year-over-year decline of 1.2% [4] - Consumer operating revenues reached $25.62 billion, surpassing the estimate of $25.36 billion, with a year-over-year increase of 2.2% [4] - Business Markets and Other revenues were $3.31 billion, above the estimate of $3.24 billion, reflecting a 3.7% year-over-year increase [4] - Wholesale revenues were $515 million, below the estimate of $583.97 million, showing a significant year-over-year decline of 13.3% [4] - Enterprise and Public Sector revenues were $3.46 billion, slightly below the estimate of $3.54 billion, indicating a year-over-year decrease of 3.6% [4] - Consumer Wireless equipment revenues were $4.53 billion, exceeding the estimate of $4.47 billion, with a year-over-year increase of 0.9% [4] - Consumer service revenues reached $20.07 billion, surpassing the estimate of $19.68 billion, reflecting a year-over-year growth of 5.6% [4] - Wireless service revenue for consumers was $17.20 billion, exceeding the average estimate of $16.91 billion, with a year-over-year increase of 6.6% [4] Stock Performance - Verizon's shares have returned -1.5% over the past month, compared to a -8.9% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Insights - Verizon Communications Inc. reported strong first-quarter 2025 results with adjusted earnings and revenues surpassing Zacks Consensus Estimates [1][2] Financial Performance - Net income for the quarter was $4.98 billion, or $1.15 per share, compared to $4.72 billion, or $1.09 per share, in the same quarter last year, driven by top-line growth [2] - Adjusted earnings were $1.19 per share, up from $1.15 year-over-year, beating the consensus estimate by 3 cents [2] - Total operating revenues increased by 1.5% to $33.48 billion, exceeding the consensus estimate of $33.32 billion, supported by growth in service revenues and higher wireless equipment revenues [3] Segment Results - Consumer segment revenues rose 2.2% year-over-year to $25.62 billion, surpassing estimates of $25.23 billion, with service revenues up 2.3% to $20.07 billion [4] - Business segment revenues decreased by 1.2% to $7.29 billion, below estimates of $7.35 billion, primarily due to lower wireline revenues [6] Customer Metrics - The company achieved 137,000 retail prepaid net additions, the highest since the TracFone acquisition, while retail postpaid and retail postpaid phone net additions contracted [1] - Wireless retail postpaid churn was 1.13%, and retail postpaid phone churn was 0.9% [5] - Fios Internet net additions were 41,000, while fixed wireless broadband net additions reached 199,000 [5] Operating Metrics - Operating income improved to $7.98 billion, a 6.1% increase, with total operating expenses remaining flat at $25.51 billion [9] - Consolidated adjusted EBITDA rose to $12.56 billion from $12.07 billion, driven by wireless service revenue growth [10] Cash Flow and Guidance - Verizon generated $7.78 billion in net cash from operating activities, with free cash flow of $3.64 billion, up from $2.71 billion year-over-year [11] - For 2025, the company expects wireless service revenue growth of 2%-2.8% and adjusted EBITDA growth of 2%-3.5% [12]

Core Insights - Verizon Communications Inc. reported first-quarter adjusted earnings of $1.19 per share on revenue of $33.49 billion, exceeding analyst estimates, but experienced a larger-than-expected loss of 289,000 postpaid net phone subscribers, compared to the anticipated decline of 197,000 [1] - The company attributed the subscriber cancellations to inflationary pressures but reaffirmed its full-year guidance [1] Technical Analysis - Verizon stock has decreased by 2.4% to $41.92 and has lost 5.5% in the current quarter, approaching its year-to-date breakeven mark [2] - The stock has fallen below its 320-day moving average, indicating a potential bearish signal for traders [2] Options Market Activity - Options volume is currently at twice the intraday average, with 12,000 calls and 7,752 puts traded, indicating a slight preference for calls over puts [3] - The most active options are the weekly 4/25 44-strike call and 43-strike call, suggesting traders may be positioning for a short-term bounce despite the post-earnings dip [3] Sentiment Trends - Recent sentiment has shifted, with puts being bought at a faster-than-usual pace over the past two weeks, indicating a strong bearish tilt in positioning [4] - Verizon's 10-day call/put volume ratio ranks in the 89th percentile of its annual range, suggesting a potential change in sentiment if the current call skew persists [4]

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1Q 2025 Earnings April 22, 2025 "Safe Harbor" Statement In this presentation we have made forward-looking statements. These statements are based on our estimates and assumptions and are subject to risks and uncertainties. Forward- looking statements include the information concerning our possible or assumed future results of operations. Forward-looking statements also include those preceded or followed by the words "anticipates," "assumes," "believes," "estimates," "expects," "forecasts," "hopes," "intends, ...

Verizon (VZ) Q1 2025 Earnings Call April 22, 2025 08:30 AM ET Company Participants Brady Connor - Senior Vice President-Investor RelationsHans Vestberg - Chairman & CEOTony Skiadas - EVP & CFOSowmyanarayan Sampath - Executive VP & CEO of Verizon Consumer GroupKannan Venkateshwar - Managing DirectorSam McHugh - Managing Director Conference Call Participants John Hodulik - Telecom and Cable AnalystBenjamin Swinburne - AnalystJames Schneider - AnalystMichael Rollins - AnalystPeter Supino - MD & Senior Analyst ...

Group 1 - Verizon Communications reported quarterly earnings of $1.19 per share, exceeding the Zacks Consensus Estimate of $1.15 per share, and showing an increase from $1.15 per share a year ago, representing an earnings surprise of 3.48% [1] - The company posted revenues of $33.49 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.48%, and an increase from $32.98 billion year-over-year [2] - Verizon has outperformed the S&P 500, with shares increasing about 7.4% since the beginning of the year, while the S&P 500 has declined by 12.3% [3] Group 2 - The current consensus EPS estimate for the upcoming quarter is $1.20 on revenues of $33.35 billion, and for the current fiscal year, it is $4.70 on revenues of $136.65 billion [7] - The Zacks Industry Rank indicates that the Wireless National industry is in the top 13% of over 250 Zacks industries, suggesting a favorable outlook for stocks within this sector [8]

Financial Performance - Total wireless service revenue reached $20.8 billion in Q1 2025, up 2.7% year over year[7] - Consolidated net income for Q1 2025 was $5.0 billion, compared to $4.7 billion in Q1 2024[7] - Earnings per share (EPS) increased to $1.15 in Q1 2025 from $1.09 in Q1 2024[7] - Total operating revenue was $33.5 billion in Q1 2025, reflecting a 1.5% increase year over year[7] - Free cash flow rose to $3.6 billion in Q1 2025, up from $2.7 billion in Q1 2024[7] - Consolidated Net Income for the three months ended March 31, 2025, was $4,983 million, compared to $4,722 million for the same period in 2024, reflecting a year-over-year increase of 5.5%[45] - Consolidated Adjusted EBITDA for the three months ended March 31, 2025, was $12,555 million, up from $12,072 million in the same period last year, representing a year-over-year growth of 4.0%[45] - Adjusted EPS for the three months ended March 31, 2025, was $1.19, compared to $1.15 for the same period in 2024, showing a growth of 3.5%[50] Revenue Breakdown - Consumer wireless service revenue was $17.2 billion in Q1 2025, an increase of 2.6% year over year[11] - Verizon Business revenue was $7.3 billion in Q1 2025, a decrease of 1.2% year over year[11] - Total operating revenues for the consumer segment increased by 2.2% to $25,618 million for the three months ended March 31, 2025, compared to $25,057 million in the same period last year[26] - Wireless service revenue increased by 2.6% to $17,199 million compared to $16,760 million in the previous year[34] - Total wireless revenue reached $27,176 million, reflecting a 2.7% increase from $26,459 million[41] Subscriber Growth - Broadband net additions totaled 339,000 in Q1 2025, with fixed wireless access growing to over 4.8 million subscribers[11] - Total broadband connections grew by 10.2% to 10,244,000 from 9,297,000 year-over-year[29] - Fixed wireless access (FWA) broadband connections surged by 40.8% to 2,914,000, up from 2,070,000[29] - Verizon aims to achieve 8 to 9 million fixed wireless access subscribers by 2028[11] Operating Metrics - Operating income rose by 6.1% to $7,978 million for the three months ended March 31, 2025, compared to $7,521 million for the same period in 2024[19] - Operating expenses for the three months ended March 31, 2025, were $25,507 million, a marginal increase of 0.2% from $25,460 million in the same period last year[19] - Operating Income Margin for the Consumer segment was 29.0% for the three months ended March 31, 2025, slightly down from 29.4% in the same period last year[54] Cash Flow and Debt - Cash and cash equivalents decreased by $1,937 million to $2,257 million as of March 31, 2025, from $4,194 million at the end of 2024[21] - Total assets decreased by $4,347 million to $380,364 million as of March 31, 2025, compared to $384,711 million at the end of 2024[21] - Total debt as of March 31, 2025, was $143,649 million, a slight decrease from $144,014 million at the end of 2024[22] - Total Debt as of March 31, 2025, was $143,649 million, with Net Unsecured Debt at $115,056 million, resulting in a Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio of 2.3x[49] - The forecast for Free Cash Flow for the twelve months ending December 31, 2025, is projected to be between $17,500 million and $18,500 million[53] Dividends - The company declared quarterly cash dividends of $0.6775 per common share, consistent with the previous quarter[22] Business Segment Performance - Segment EBITDA for the Consumer segment for the three months ended March 31, 2025, was $10,967 million, reflecting a year-over-year increase of 2.7%[54] - The Business segment reported Segment EBITDA of $1,684 million for the three months ended March 31, 2025, which is a 10.3% increase compared to the same period last year[54]