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

As you might know, Verizon Communications Inc. (NYSE:VZ) recently reported its first-quarter numbers. It was a credible result overall, with revenues of US$33b and statutory earnings per share of US$1.09 both in line with analyst estimates, showing that Verizon Communications is executing in line with expectations. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Verizon Communications

Taking into account the latest results, Verizon Communications' 22 analysts currently expect revenues in 2024 to be US$135.0b, approximately in line with the last 12 months. Statutory earnings per share are predicted to bounce 67% to US$4.50. In the lead-up to this report, the analysts had been modelling revenues of US$135.6b and earnings per share (EPS) of US$4.53 in 2024. 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.

The analysts reconfirmed their price target of US$45.47, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Verizon Communications, with the most bullish analyst valuing it at US$54.00 and the most bearish at US$38.86 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 1.0% growth on an annualised basis. That is in line with its 0.9% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 1.9% per year. So it's pretty clear that Verizon Communications is expected to grow slower than similar companies in the same industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous 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$45.47, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. 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..

However, before you get too enthused, we've discovered 5 warning signs for Verizon Communications that you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.