Verizon Q1 Print Looms As Stock Underperforms Peers Amid Competitive Pressure: Retail On Wait-and-Watch Mode

Telecom giant Verizon Communications, Inc. (VZ) is scheduled to report its quarterly results before the market opens on Tuesday.

According to the Finchat-compiled consensus estimates, the New York-based company is expected to report adjusted earnings per share (EPS) of $1.15 for the first quarter of the fiscal year 2025 and revenue of $33.30 billion.

This would mark a decline from the year-ago EPS of $1.15 and revenue of $33 billion. 

The headline numbers for the preceding fourth quarter were $1.10 and $35.68 billion, respectively, with wireless service revenue rising 3.1% to $20 billion.

Verizon's fourth-quarter total phone net additions were 568,000, and broadband net additions totaled 408,000. 

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) reversed to a profit of $5.1 billion from a loss of $2.6 billion a year ago. 

While issuing its fourth-quarter earnings in late January, the company guided 2025 wireless service revenue growth of 2%-2.8%, adjusted EBITDA growth of 2%- 3.5%, and adjusted EPS growth of 0%- 3%.

Later in March, while presenting at a Deutsche Bank conference, Verizon said it faced intensified competitive pressure as peers persisted with holiday promotions into the first quarter.

The company also predicted a 3-5-point incremental churn impacting Consumer Group postpaid net additions.

Earlier this month, The Fly reported that Evercore ISI upgraded Verizon to 'Outperform' from 'In Line' and upped the price target to $48 from $44. 

The firm also named the stock its top pick across wireless and its top value pick.

Analysts said that, despite outperforming the broader market this year, Verizon shares continue to lag against peers due to multiple years of relative underperformance.

The brokerage believes Verizon has executed well towards improvements on postpaid subscriber trends at Consumer, showcased continued momentum across Business wireless customers, and was consistently hitting its broadband subscriber targets.

Rival AT&T, Inc. (T) is due to report on Wednesday.

On Stocktwits, retail sentiment toward Verizon stock stayed 'neutral' (45/100), and the message volume was 'low.'

A bullish user said they didn't buy puts this time and continued to hold the share.

Another user said Verizon stock is a slow mover and will likely have swing around 2%, presenting limited scope for playing the earnings move. 

Verizon stock ended Monday's session down 2.52% at $42.93, although it has gained 11% year-to-date (YTD), riding on its defensive appeal amid the uncertain macro environment.

The Koyfin-compiled average analysts' price target for the stock is $47.90, implying a nearly 12% upside from current levels. 

For the YTD, AT&T is up a steeper 18%, and T-Mobile US (TMUS) is up 15%,

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Read Next: Apple Analyst Warns Of 'Immeasurable' And 'Uncontrollable' Tariff Risks For iPhone Maker Amid Global Trade War