Telecom giant Verizon (VZ) will report its financial results for the first quarter of 2022 on April 22.
Verizon’s last reported fourth-quarter results were better-than-expected. Revenues of $34.1 billion exceeded the $33.9 billion average projection. Meanwhile, adjusted earnings of $1.31 per share were higher than the $1.29 per share expected by experts.
The company’s growth is expected to be fueled by strong momentum in the wireless broadband space and the rapid uptake of 5G-capable devices. Furthermore, Verizon’s strategic alliances with Apple (AAPL), Google (GOOGL), and Amazon Web Services (AMZN) provide it with a competitive advantage over its competitors and position it well for future growth.
The stock has a market cap of $228.5 billion and has gained 6% year-to-date. The share price could get a further boost if Q1 earnings beat expectations.
Major Developments
Verizon recently signed a multi-year purchase deal with Casa Systems (CASA), a provider of infrastructure technology solutions. As part of the commercial arrangement, Verizon will pay approximately $40 million for a 9.9% share in Casa Systems.
Per the deal, Casa Systems will offer Verizon 5G core network functionality to enable its public Mobile Edge Compute (MEC) service.
This will enable Verizon to enhance its customer offerings.
Q1 Expectations
According to analysts, Verizon is expected to report adjusted earnings of $1.34 per share. This represents a year-over-year increase of 2.3%.
Website Trends Are Encouraging
We also used TipRanks’ new online tool to track user visits to its website to gain some insights into the company’s performance ahead of the Q1 print. Notably, the tool revealed positive website traffic trends, which may be reassuring to investors.
We found that overall estimated visits to the Verizon website increased in Q1. In particular, the total projected worldwide visits to the VZ website increased by 13% sequentially from the fourth quarter of 2021.
Wall Street’s Take
That said, Wall Street is cautiously optimistic about Verizon stock, with a Moderate Buy consensus rating based on three Buys and four Holds. As for price targets, the average VZ price target of $60.43 implies around 11% upside potential from current levels.
Bottom Line
Verizon is a dividend-paying company that has a number of competitive advantages. The company’s 5G ultra-wideband service should drive multiple growth opportunities for the company. In the previous eight quarters, Verizon has continued to outperform earnings projections, and investors are eagerly waiting to see if the business can maintain its momentum in the first quarter.
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