Verizon Communications (VZ) Tops Q4 EPS by 2c, Offers Guidance

Verizon Communications (NYSE: VZ) reported Q4 EPS of $1.31, $0.02 better than the analyst estimate of $1.29. Revenue for the quarter came in at $34.1 billion versus the consensus estimate of $33.89 billion.

GUIDANCE:

Verizon Communications sees FY2022 EPS of $5.40-$5.55, versus the consensus of $5.39.

• Organic service and other revenue growth of around 3 percent. On a reported basis, which includes the net impact of the sale of Verizon Media and the company's ownership of TracFone, service and other revenue growth is expected to be in a range of 1.0 percent and 1.5 percent.
• Reported wireless service revenue growth in the range of 9 percent to 10 percent. Excluding the impact of the TracFone acquisition, wireless service revenue is expected to grow at least 3 percent.
• Adjusted EBITDA* growth in the range of 2 percent to 3 percent.
• Adjusted EPS* of $5.40 to $5.55. The company expects adjusted EBITDA* growth in 2022 to be offset by headwinds from non-cash items. Beginning in 2022, the company's adjusted EPS* will exclude amortization of acquisition-related intangible assets. In 2021, the intangible amortization negatively impacted adjusted EPS* by approximately 11 cents. In 2022, the company anticipates the impact to be approximately 17 cents to 19 cents.
• Adjusted effective income tax rate* in the range of 23 percent to 25 percent.
• Capital spending, excluding C-Band, in the range of $16.5 billion to $17.5 billion, a decrease from $18.2 billion in 2021, as the company has started its progress towards lower capital intensity. Additional expenditures related to the deployment of the company's C-Band 5G network are expected to be in the range of $5 billion to $6 billion as the company continues to build out the initial markets and begins preparations for deploying Phase 2 spectrum.

For earnings history and earnings-related data on Verizon Communications (VZ) click here.

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