Verizon: The First Day of the Rest of Its Life

Telecom & Wireless

Published: February 24, 2014 9:25 am

Last Updated: April 28, 2020 9:18 am

Verizon Communications Inc. (NYSE: VZ) last Friday completed its acquisition of the 45% minority stake in Verizon Wireless held by Vodafone PLC (NASDAQ: VOD). On Monday morning, Verizon released its revised financial outlook for the current year.

The company expects adjusted earnings per share to rise by about 10% above the 2013 total of $2.84. The current consensus estimate calls for $3.50, so Verizon is considerably short of expectations.

Verizon’s estimate of revenue growth is now 4% above 2013 revenue. Based on $120.55 billion in 2013, revenue should come in around $125.37 billion, somewhat higher than the current consensus estimate of $125.02 billion.

The company also expects to expand its non-GAAP EBITDA margin from last year’s level of 34.9%. In Monday’s press release Verizon said it is “targeting increases” in both the wireline and wireless businesses.

The one figure everyone is most curious about is the company’s free cash flow, and that is the one figure Verizon did not address. The company did say that it “expects to deliver strong cash flows to fund network investments, reduce debt and support the dividend.” Verizon’s free cash flow will be the most closely watched number the company reports going forward.

Verizon shares were trading down 0.7% in premarket trading Monday, at $46.94 in a 52-week range of $45.08 to $54.31. Shares are down nearly 6% year to date. The consensus price target from Thomson/First Call is around $54.00.

Take Charge of Your Retirement In Just A Few Minutes (Sponsor)

Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance—and SmartAsset’s simple quiz makes it easier than ever for you to connect with a vetted financial advisor.

Here’s how it works:

Answer a Few Simple Questions. Tell us a bit about your goals and preferences—it only takes a few minutes!
Get Matched with Vetted Advisors Our smart tool matches you with up to three pre-screened, vetted advisors who serve your area and are held to a fiduciary standard to act in your best interests. Click here to begin
Choose Your Fit Review their profiles, schedule an introductory call (or meet in person), and select the advisor who feel is right for you.

Why wait? Start building the retirement you’ve always dreamed of. Click here to get started today!