Verizon Communications (VZ, Financial) reported quarterly earnings that slightly surpassed Wall Street expectations, driven by price increases and higher-than-expected wireless service subscriptions. The telecom giant added 568,000 postpaid phone subscribers in the last quarter of 2024, exceeding the anticipated 488,300. In the final quarter of 2023, Verizon saw a net increase of 449,000 postpaid phone users.
The company reported a net income of $5.1 billion, or $1.18 per share, compared to a loss of $2.6 billion, or 64 cents per share, a year earlier due to a goodwill impairment charge of approximately $7.8 billion. Excluding one-time items, Verizon's adjusted earnings for the fourth quarter were $1.10 per share, a cent above analyst expectations.
Revenue rose by 1.6% year-over-year to $35.7 billion, surpassing the forecasted $35.34 billion. Verizon's wireless service revenue increased by 3% to $20 billion, attributed to recent price hikes, sales of benefits and additional services, and some growth in fixed wireless access. Wireless equipment sales grew by about half a percentage point to $7.5 billion due to increased customer upgrades.
Looking ahead, Verizon expects its adjusted earnings for 2025 to remain flat or grow by up to 3% compared to 2024, with the latter's adjusted earnings at $4.59 per share. A 3% increase would bring earnings per share to $4.73, slightly above current analyst estimates.
