Summary
Verizon Communications Inc. reported relatively flat total operating revenues for the third quarter of 2024 compared to the prior year, with a slight increase for the nine-month period. While the Consumer segment showed modest revenue growth, driven by service revenue, the Business segment experienced a revenue decline. Net income for the quarter and year-to-date showed a decrease compared to the previous year, impacted by higher operating expenses, particularly selling, general, and administrative costs which were significantly influenced by a substantial severance charge related to a voluntary separation program. The company continues to invest heavily in its network infrastructure, with capital expenditures remaining significant, though lower year-over-year due to the completion of accelerated C-Band deployment programs. Financially, Verizon maintained a strong cash flow from operations, though it was lower year-over-year. The company also managed its debt effectively, undertaking debt exchange offers and repaying borrowings. Despite the decline in net income and increased operating expenses, the company highlights ongoing strategic initiatives, including the pending acquisition of Frontier Communications and the agreement to lease wireless towers to Vertical Bridge, which are expected to shape future performance. Investors should monitor the impact of these strategic moves and the ongoing cost management efforts.
Financial Highlights
46 data points| Revenue | $33.33B |
| SG&A Expenses | $9.71B |
| Operating Expenses | $27.40B |
| Operating Income | $5.93B |
| Net Income | $3.31B |
| EPS (Basic) | $0.78 |
| EPS (Diluted) | $0.78 |
| Shares Outstanding (Basic) | 4.22B |
| Shares Outstanding (Diluted) | 4.22B |
Key Highlights
- 1Total operating revenues remained relatively flat for the third quarter of 2024 ($33.330 billion) and increased slightly by 0.3% for the nine-month period ($99.107 billion), primarily driven by the Consumer segment's service revenue growth.
- 2Net income attributable to Verizon decreased to $3.306 billion for the third quarter of 2024, down from $4.762 billion in the prior year. Year-to-date net income also declined to $12.501 billion from $14.319 billion.
- 3Operating expenses increased significantly by 6.0% for the quarter and 1.7% year-to-date, largely due to a $1.7 billion severance charge related to a voluntary separation program and other headcount reduction initiatives.
- 4Capital expenditures for the nine months ended September 30, 2024, were $12.0 billion, a decrease from $14.2 billion in the prior year, largely due to the completion of accelerated C-Band deployment programs.
- 5The company announced a significant agreement to lease over 6,000 wireless towers to Vertical Bridge for approximately $2.8 billion, expected to close by year-end 2024.
- 6Verizon entered into an agreement to acquire Frontier Communications Parent, Inc. for $1.0 billion, subject to regulatory and shareholder approvals.
- 7Free cash flow for the nine months ended September 30, 2024, was $14.461 billion, a slight decrease from $14.634 billion in the prior year, reflecting lower operating cash flow and reduced capital expenditures.