Last week, you might have seen that Verizon Communications Inc. (NYSE:VZ) released its quarterly result to the market. The early response was not positive, with shares down 2.8% to US$42.81 in the past week. Verizon Communications reported in line with analyst predictions, delivering revenues of US$33b and statutory earnings per share of US$1.15, 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Following last week's earnings report, Verizon Communications' 23 analysts are forecasting 2025 revenues to be US$137.0b, approximately in line with the last 12 months. Statutory earnings per share are predicted to accumulate 9.6% to US$4.62. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$136.8b and earnings per share (EPS) of US$4.62 in 2025. 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.

See our latest analysis for Verizon Communications

The analysts reconfirmed their price target of US$48.02, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Verizon Communications at US$55.00 per share, while the most bearish prices it at US$42.00. This is a very narrow spread of estimates, implying either that Verizon Communications is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Verizon Communications' rate of growth is expected to accelerate meaningfully, with the forecast 1.7% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 0.8% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 2.9% annually. 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. 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Verizon Communications analysts - going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Verizon Communications has 2 warning signs we think 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.