Analysts Are Updating Their Verizon Communications Inc. (NYSE:VZ) Estimates After Its Annual Results

Simply Wall St.
14 Feb

It's been a good week for Verizon Communications Inc. (NYSE:VZ) shareholders, because the company has just released its latest full-year results, and the shares gained 2.8% to US$41.04. Verizon Communications reported US$135b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$4.14 beat expectations, being 2.6% higher than what the analysts expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Verizon Communications

NYSE:VZ Earnings and Revenue Growth February 14th 2025

Following last week's earnings report, Verizon Communications' 24 analysts are forecasting 2025 revenues to be US$137.0b, approximately in line with the last 12 months. Per-share earnings are expected to climb 11% to US$4.62. Before this earnings report, the analysts had been forecasting revenues of US$137.0b and earnings per share (EPS) of US$4.68 in 2025. 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$47.66, suggesting that the company has met expectations in its recent result. 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$40.79. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Verizon Communications is an easy business to forecast or the the analysts are all using similar assumptions.

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 1.6% annualised growth to the end of 2025 ranking favourably alongside historical growth of 0.8% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 2.7% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, Verizon Communications is expected 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. The consensus price target held steady at US$47.66, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Verizon Communications. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Verizon Communications going out to 2027, and you can see them free on our platform here..

Even so, be aware that Verizon Communications is showing 2 warning signs in our investment analysis , you should know about...

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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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