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Verizon (VZ) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates
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Verizon Communications (VZ - Free Report) reported $33.34 billion in revenue for the quarter ended September 2023, representing a year-over-year decline of 2.6%. EPS of $1.22 for the same period compares to $1.32 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $33.39 billion, representing a surprise of -0.16%. The company delivered an EPS surprise of +4.27%, with the consensus EPS estimate being $1.17.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Verizon performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Business - Churn rate - Wireless - Retail postpaid: 1.5% versus 1.5% estimated by five analysts on average.
Business - Wireless - Net subscribers additions - Retail postpaid phones: 151 thousand versus 149.53 thousand estimated by five analysts on average.
Consumer - Wireline - Net subscribers additions - Fios video: -78 thousand versus -77.47 thousand estimated by four analysts on average.
Consumer - Wireless Retail postpaid ARPA: $133.47 versus $132.37 estimated by four analysts on average.
Operating revenues- Consumer: $25.26 billion compared to the $25.10 billion average estimate based on six analysts. The reported number represents a change of -2.3% year over year.
Operating revenues- Consumer - Other: $1.51 billion versus $1.64 billion estimated by six analysts on average. Compared to the year-ago quarter, this number represents a -19.1% change.
Operating revenues- Consumer - Wireless equipment: $4.90 billion compared to the $4.83 billion average estimate based on six analysts. The reported number represents a change of -11.8% year over year.
Operating revenues- Consumer - Service: $18.85 billion versus $18.15 billion estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +2.3% change.
Operating revenues- Business: $7.53 billion compared to the $7.67 billion average estimate based on six analysts. The reported number represents a change of -4% year over year.
Operating revenues- Business- Wholesale: $556 million versus $637.56 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -15.9% change.
Operating revenues- Business- Enterprise and Public Sector: $3.79 billion versus the five-analyst average estimate of $3.84 billion. The reported number represents a year-over-year change of +147.4%.
Wireless service revenue- Business: $3.37 billion versus the five-analyst average estimate of $3.39 billion.
Shares of Verizon have returned -5.3% over the past month versus the Zacks S&P 500 composite's -2.3% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
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Verizon (VZ) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates
Verizon Communications (VZ - Free Report) reported $33.34 billion in revenue for the quarter ended September 2023, representing a year-over-year decline of 2.6%. EPS of $1.22 for the same period compares to $1.32 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $33.39 billion, representing a surprise of -0.16%. The company delivered an EPS surprise of +4.27%, with the consensus EPS estimate being $1.17.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Verizon performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Business - Churn rate - Wireless - Retail postpaid: 1.5% versus 1.5% estimated by five analysts on average.
- Business - Wireless - Net subscribers additions - Retail postpaid phones: 151 thousand versus 149.53 thousand estimated by five analysts on average.
- Consumer - Wireline - Net subscribers additions - Fios video: -78 thousand versus -77.47 thousand estimated by four analysts on average.
- Consumer - Wireless Retail postpaid ARPA: $133.47 versus $132.37 estimated by four analysts on average.
- Operating revenues- Consumer: $25.26 billion compared to the $25.10 billion average estimate based on six analysts. The reported number represents a change of -2.3% year over year.
- Operating revenues- Consumer - Other: $1.51 billion versus $1.64 billion estimated by six analysts on average. Compared to the year-ago quarter, this number represents a -19.1% change.
- Operating revenues- Consumer - Wireless equipment: $4.90 billion compared to the $4.83 billion average estimate based on six analysts. The reported number represents a change of -11.8% year over year.
- Operating revenues- Consumer - Service: $18.85 billion versus $18.15 billion estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +2.3% change.
- Operating revenues- Business: $7.53 billion compared to the $7.67 billion average estimate based on six analysts. The reported number represents a change of -4% year over year.
- Operating revenues- Business- Wholesale: $556 million versus $637.56 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -15.9% change.
- Operating revenues- Business- Enterprise and Public Sector: $3.79 billion versus the five-analyst average estimate of $3.84 billion. The reported number represents a year-over-year change of +147.4%.
- Wireless service revenue- Business: $3.37 billion versus the five-analyst average estimate of $3.39 billion.
View all Key Company Metrics for Verizon here>>>Shares of Verizon have returned -5.3% over the past month versus the Zacks S&P 500 composite's -2.3% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.