On January 24, 2025, Verizon Communications Inc (VZ, Financial) released its 8-K filing, showcasing a strong fourth-quarter performance for 2024. The company reported earnings per share (EPS) of $1.18, surpassing the analyst estimate of $1.06. Total operating revenue for the quarter reached $35.7 billion, exceeding the estimated $35,318.72 million. This performance underscores Verizon's continued leadership in the telecommunications sector, driven by significant growth in wireless service revenue.
Company Overview
Verizon Communications Inc (VZ, Financial) is the largest US wireless carrier, with wireless services accounting for about 70% of its total service revenue and nearly all of its operating income. The company serves approximately 93 million postpaid and 20 million prepaid phone customers through its nationwide network. Additionally, Verizon's fixed-line telecom operations reach about 30 million homes and businesses in the Northeast, serving around 8 million broadband customers. The company also provides telecom services nationwide to enterprise customers. In September 2024, Verizon agreed to acquire Frontier Communications, further expanding its market presence.
Performance and Challenges
Verizon's strong performance in Q4 2024 was marked by the addition of nearly 1 million postpaid mobile and broadband subscribers, the best quarterly result in over a decade. The company reported industry-leading total wireless service revenue of $20.0 billion for the quarter, a 3.1% increase year-over-year. This growth was primarily driven by pricing actions, sales of perks and add-on services, and the expansion of fixed wireless access.
Despite these achievements, Verizon faces challenges such as higher upgrade volumes and continued declines in Business wireline revenue. These factors could potentially impact future profitability and require strategic adjustments to maintain growth momentum.
Financial Achievements
Verizon's financial achievements in 2024 include delivering on its financial guidance, with full-year EPS of $4.14, surpassing the annual estimate of $4.09. The company's total operating revenue for the year was $134.8 billion, slightly above the estimated $134,462.90 million. Verizon also reported a full-year free cash flow of $19.8 billion, up from $18.7 billion in 2023, highlighting its strong cash generation capabilities.
Key Financial Metrics
Verizon's consolidated net income for Q4 2024 was $5.1 billion, a significant improvement from a net loss of $2.6 billion in Q4 2023. The company's consolidated adjusted EBITDA was $11.9 billion, up from $11.7 billion in the previous year. These metrics are crucial for evaluating Verizon's operational efficiency and profitability in the competitive telecommunications industry.
With innovations powered by the best network in the country, we are bringing the best experiences to our customers, in life and work," said Verizon Chairman and CEO Hans Vestberg.
Analysis and Outlook
Verizon's strong Q4 2024 results reflect its successful execution of strategic priorities, including growing wireless service revenue and expanding customer relationships. The company's focus on innovation and customer-centric offerings positions it well for future growth, especially with the pending acquisition of Frontier Communications and new satellite partnerships.
Looking ahead, Verizon expects continued growth in wireless service revenue and adjusted EBITDA in 2025, supported by its robust network infrastructure and strategic initiatives. However, the company must navigate challenges such as competitive pressures and evolving consumer preferences to sustain its market leadership.
Explore the complete 8-K earnings release (here) from Verizon Communications Inc for further details.
