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What Do Analysts Expect for Verizon’s 1Q18 Earnings?

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Apr. 5 2018, Published 7:33 p.m. ET

Verizon’s earnings in 1Q18

Verizon (VZ) is set to report its results for 1Q18 on April 24, 2018. In this series, we’ll look at expectations for the company’s performance during the quarter. Wall Street analysts expect the telecom company’s EPS (earnings per share) to increase YoY (year-over-year) in 1Q18, to $1.11 from $0.95.

In 4Q17, Verizon reported adjusted EPS of $0.86, which were flat YoY and ~2.3% lower than what analysts had expected.

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Verizon’s major competitors had a much better 4Q17. AT&T’s (T) adjusted EPS rose ~18.2% YoY to $0.78 in 4Q17, T-Mobile’s (TMUS) rose ~35.6% YoY to $0.61, and Sprint’s (S) improved from -$0.12 in fiscal 3Q16 to $1.76 in fiscal 3Q17 (quarter ended December 2017). However, $7.1 billion of Sprint’s $7.2 billion net income in fiscal 3Q17 was a non-cash benefit from tax reform.

Verizon optimistic about digital media

Verizon foresees that wireless video and the IoT (Internet of Things) could be frontrunners in driving data usage, revenue, and earnings as the traditional US wireless smartphone market becomes saturated. Organically, in 4Q17, Verizon’s IoT and telematics revenue rose ~7.8% YoY to $359.0 million.

Verizon’s Yahoo acquisition could play a vital role in boosting its position in the advertising and digital media space. Verizon is concentrating on becoming a significant digital advertising player like industry giants Alphabet (GOOGL) and Facebook (FB). In the next part, we’ll look at how much revenue growth we can expect from Verizon in 1Q18.

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