The Verizon Communications Inc. (NYSE:VZ) First-Quarter Results Are Out And Analysts Have Published New Forecasts

Shareholders might have noticed that Verizon Communications Inc. (NYSE:VZ) filed its first-quarter result this time last week. 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. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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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 increase 9.6% to US$4.62. Before this earnings report, the analysts had been forecasting 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.

Check out our latest analysis for Verizon Communications

There were no changes to revenue or earnings estimates or the price target of US$48.02, suggesting that the company has met expectations in its recent result. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Verizon Communications, with the most bullish analyst valuing it at US$55.00 and the most bearish at US$42.00 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Verizon Communications' past performance and to peers in the same industry. 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. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 2.9% 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. 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.

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 2027, and you can see them free on our platform here..

We don't want to rain on the parade too much, but we did also find 2 warning signs for Verizon Communications that you need to be mindful 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.