Verizon Communications (NYSE:VZ) reported its first-quarter 2024 earnings, surpassing analysts' expectations for adjusted earnings per share (EPS) but falling short on revenue. The company's stock rose by as much as 3.2% premarket following the announcement, indicating investor optimism driven by the earnings beat.
For the first quarter, Verizon posted an adjusted EPS of $1.15, which is $0.03 higher than the analysts' estimate of $1.12. However, the revenue for the quarter was $33 billion, slightly below the consensus estimate of $33.23 billion. When compared to the same period last year, the company's total operating revenue saw a marginal increase of 0.2%, while adjusted EPS saw a slight decline from $1.20 in the first quarter of 2023.
Verizon's wireless service revenue experienced a 3.3% rise YoY, reaching $19.5 billion, attributed to pricing actions and an expanding fixed wireless subscriber base. Despite a decrease in wireless equipment revenue due to lower upgrade volumes, the company's overall performance was bolstered by these gains.
The company's guidance for the full year 2024 forecasts an adjusted EPS range of $4.50 to $4.70, with the midpoint of $4.60 slightly above the analysts' consensus of $4.57. This outlook suggests confidence in the company's strategy and future performance.
Verizon Chairman and CEO Hans Vestberg commented on the results, "Our strong results show that our team is delivering. Our performance in the first quarter sets us up for a successful 2024." He emphasized the company's trajectory to meet financial guidance and the rapid growth of the fixed wireless subscriber base.
In addition to the EPS beat, Verizon reported a consolidated net income of $4.7 billion for the first quarter, down from $5.0 billion in the same quarter last year. The company also highlighted an increase in consolidated adjusted EBITDA, which rose from $11.9 billion in the first quarter of 2023 to $12.1 billion in the current quarter.
The positive market response, as indicated by the premarket stock price rise, reflects investor satisfaction with Verizon's ability to exceed earnings expectations despite the slight revenue shortfall. The company's solid wireless service revenue and strategic pricing actions have been key to its performance, setting a strong foundation for the remainder of the year.