Verizon Communications (NYSE:VZ) exceeded analyst expectations for adjusted earnings per share (EPS) in its first-quarter 2024 report, although it slightly missed on revenue targets. Following the earnings announcement, the company’s stock saw a drop of more than 4% intra-day today.
Verizon recorded an adjusted EPS of $1.15 for the quarter, which was $0.03 above the analyst forecast of $1.12. Nevertheless, its revenue amounted to $33 billion, just shy of the anticipated $33.23 billion. Year-over-year, Verizon’s total operating revenue showed a modest increase of 0.2%, whereas the adjusted EPS was slightly down from $1.20 in the first quarter of 2023.
The company witnessed a 3.3% year-on-year increase in wireless service revenue, totaling $19.5 billion, driven by pricing adjustments and growth in its fixed wireless subscriber base. Although there was a dip in wireless equipment revenue due to fewer upgrades, the overall performance benefited from these revenue gains.
Looking ahead, Verizon set its full-year 2024 adjusted EPS guidance at between $4.50 and $4.70, with a midpoint of $4.60, marginally above the consensus forecast of $4.57. This guidance indicates Verizon’s confidence in its strategic initiatives and anticipated future performance.