Verizon Q2 2024 Results: Strong Revenue Growth and Future Guidance

Verizon Communications Inc. Reports Strong Q2 2024 Results and Stays on Track for Full-Year Financial Guidance

Verizon Communications Inc. has announced its second-quarter 2024 financial results, showcasing noteworthy gains in wireless service revenue, broadband subscriber growth, and continued progress in its three primary financial goals: wireless service revenue, consolidated adjusted EBITDA, and free cash flow. This robust performance indicates that the company is well-positioned to meet its full-year 2024 financial targets.

The company’s CEO, Hans Vestberg, emphasized that the improvements witnessed both sequentially and year-over-year are a testament to the company’s operational excellence and strategic moves aimed at providing choice, value, and control to its customers. He highlighted that Verizon’s industry-leading network not only supports millions of customers but also serves as the backbone for emerging technologies.

Financial Performance Overview

Verizon reported earnings per share (EPS) of $1.09 for the second quarter of 2024, slightly down from $1.10 in the same period in 2023. On an adjusted basis, excluding special items, the EPS was $1.15, compared to $1.21 in the second quarter of 2023. The financial results for the quarter included a pre-tax loss of $355 million from special items, which encompassed the amortization of intangible assets related to Tracfone and other acquisitions amounting to $219 million, as well as a $136 million charge associated with a mark-to-market adjustment for pension liabilities.

Wireless Service Revenue

Verizon’s wireless service revenue displayed solid growth, driven by increased customer demand and competitive pricing strategies. The company continues to focus on enhancing customer satisfaction through innovative service offerings and improved network capabilities.

Broadband Subscriber Growth

The company also reported significant growth in broadband subscribers, underscoring the effectiveness of its strategies to expand its footprint in the broadband market. This growth is a crucial component of Verizon’s broader strategy to diversify its revenue streams and reduce dependence on traditional wireless services.

Future Outlook and Forward-Looking Statements

Verizon remains optimistic about its financial performance for the rest of the year. The company continues to expect strong wireless service revenue, consolidated adjusted EBITDA, and free cash flow for 2024. However, it’s important to note that forward-looking statements are based on estimates and assumptions that are subject to risks and uncertainties. Factors such as market competition, technological advancements, economic conditions, and regulatory changes could impact future results.

Risks and Uncertainties

Several factors could influence Verizon’s future performance, including:

• Competition in the markets where Verizon operates, including pricing and promotional strategies.
• Technological advancements and changes in consumer demand.
• Deployment issues or delays in the 5G network, leading to increased costs or reduced benefits.
• Adverse economic conditions, including inflation and fluctuating interest rates.
• Cyber attacks and their potential financial or reputational impacts.
• Natural disasters, acts of war, and other disruptive events affecting operations.
• Disruptions in the supply chain or vendor relationships.
• Changes in labor conditions and their financial or operational impacts.
• Regulatory changes affecting network operations or business practices.
• Environmental concerns and related liabilities.
• High levels of indebtedness and associated costs.
• Litigation risks and potential material expenses.

FAQs

What were Verizon’s second-quarter 2024 earnings per share (EPS)?

Verizon reported an EPS of $1.09 for the second quarter of 2024, slightly lower than the $1.10 reported in the same period in 2023. On an adjusted basis, excluding special items, the EPS was $1.15 compared to $1.21 in the second quarter of 2023.

What were the special items that affected Verizon’s financial results in Q2 2024?

The second-quarter 2024 financial results included a pre-tax loss of $355 million from special items. These included the amortization of intangible assets related to Tracfone and other acquisitions amounting to $219 million, and a $136 million charge associated with a mark-to-market adjustment for pension liabilities.

What are Verizon’s primary financial goals for 2024?

Verizon’s primary financial goals for 2024 include achieving strong wireless service revenue, consolidated adjusted EBITDA, and free cash flow.

What factors could impact Verizon’s future performance?

Several factors could influence Verizon’s future performance, including market competition, technological advancements, economic conditions, regulatory changes, cyber attacks, natural disasters, supply chain disruptions, labor conditions, environmental concerns, indebtedness, and litigation risks.

Conclusion

Verizon Communications Inc. has demonstrated strong performance in the second quarter of 2024, showcasing growth in wireless service revenue and broadband subscribers. The company remains on track to meet its full-year financial guidance, driven by its strategic initiatives and operational excellence. However, it is essential to consider the various risks and uncertainties that could impact future performance. As Verizon continues to navigate the competitive and dynamic telecommunications landscape, its focus on innovation, customer satisfaction, and financial stability will be crucial in maintaining its upward momentum and achieving long-term growth.