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Verizon’s 1Q18 Revenue: Gauging Analysts’ Expectations

Ambrish Shah - Author

Aug. 18 2020, Updated 4:38 a.m. ET

Verizon’s revenue in 1Q18

In the previous part of this series, we learned about analysts’ expectations for Verizon’s (VZ) 1Q18 earnings. In this part, we’ll look at the company’s expected revenue growth. Wall Street analysts forecast Verizon’s total revenue to grow ~4.6% YoY (year-over-year) to ~$31.2 billion in 1Q18.

In 4Q17, Verizon reported total revenue of $34.0 billion, marking a ~5.0% rise YoY. Meanwhile, in fiscal 2017, the telecom company’s revenue rose ~0.1% YoY to $126.0 billion. However, excluding the impact of acquisitions and divestitures, its adjusted operating revenue fell ~2.0% YoY, mainly due to lower wireless service revenue.

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About 80% of postpaid phone subscribers are now on an unsubsidized pricing plan, compared with 67% in 4Q16. As the plan’s penetration increases, Verizon’s service revenue decline may slow down. Management stated that the company is on track to achieve YoY wireless service revenue growth by 2H18, excluding the effects of its new revenue recognition standards.

Verizon posted wireless equipment revenue of $6.5 billion in 4Q17, representing a ~13.0% increase YoY. This growth in equipment revenue was driven by a higher device payment plan take rate.

Peer comparison

In 4Q17, AT&T’s (T) total revenue fell ~0.4% YoY to $41.7 billion, whereas T-Mobile’s (TMUS) rose ~5.1% YoY to $10.8 billion. Sprint’s (S) total revenue fell ~3.6% YoY to $8.2 billion. In the next part, we’ll discuss how much consolidated adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) growth we can expect from Verizon in 1Q18.


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