Verizon Communications Inc. (NYSE:VZ) Earnings Preview and Financial Health

• Verizon is set to release its quarterly earnings on January 24, 2025, with expectations of an EPS of $1.11 and revenue of approximately $35.49 billion.
• The company has experienced a price correction but shows signs of stabilizing fundamentals with a recent dividend declaration and earnings forecast.
• Despite slight decreases in earnings estimates for 2024 and 2025, Verizon has consistently surpassed earnings expectations in the past four quarters.

Verizon Communications Inc. (NYSE:VZ) is a major player in the telecommunications industry, providing wireless services, broadband, and digital media. As it prepares to release its quarterly earnings on January 24, 2025, analysts have set expectations for an earnings per share (EPS) of $1.11 and revenue of approximately $35.49 billion. Verizon competes with other telecom giants like AT&T and T-Mobile.

Verizon is currently experiencing a price correction, which has widened the gap between its stock price and intrinsic value. Despite this, the company's fundamentals are stabilizing, as highlighted by its recent dividend declaration and earnings forecast. However, growth pressures remain a concern. The Zacks Consensus Estimate projects sales at $35.4 billion and earnings at $1.09 per share for the upcoming quarter.

Over the past month, Verizon's earnings estimates for 2024 have slightly decreased from $4.60 to $4.59 per share, and for 2025, from $4.71 to $4.70 per share. Despite these minor adjustments, Verizon has consistently surpassed earnings expectations in the past four quarters, with an average earnings surprise of 1.34%. In the most recent quarter, the company achieved an earnings surprise of 0.85%.

Verizon's financial metrics provide insight into its market position. The company has a price-to-earnings (P/E) ratio of approximately 16.78, indicating the price investors are willing to pay for each dollar of earnings. Its price-to-sales ratio is about 1.22, suggesting that investors are paying $1.22 for every dollar of sales. The enterprise value to sales ratio is around 2.48, reflecting the company's total valuation compared to its sales.

The company's debt-to-equity ratio is approximately 1.81, showing that Verizon uses a significant amount of debt compared to its equity. The current ratio is around 0.66, indicating the company's ability to cover its short-term liabilities with its short-term assets. Investors are advised to approach with caution as Verizon appears to be in a balanced position ahead of its earnings report.