Verizon Stock Steady as Earnings Beat, and EBITDA Growth Target for FY25

Verizon Communications Inc. (NYSE: VZ) has recently made an optimistic forecast for its financial performance looking ahead to fiscal year 2025. The telecom giant predicts its adjusted EBITDA to grow between 2% and 3.5%, signalling confidence in the company's future business trajectory.

Earnings came in slightly above consensus, with $1.10 in EPS against $1.09 expected. Revenue came in at $35.7 billion, with the street expecting $35.33 billion. In pre-market trading, Verizon's stock is unchanged at $39.18.

Looking at the financial road ahead, Verizon projects a robust cash flow from operations ranging from $35.0 billion to $37.0 billion by fiscal year 2025. The company's capital expenditures are forecasted to lie between $17.5 billion and $18.5 billion, implying solid planned investments in its operational capabilities. This disciplined financial planning is expected to yield a free cash flow mirroring the capital expenditure numbers, amounting to $17.5 billion to $18.5 billion.

Headquartered in New York, NY, Verizon Communications Inc. operates primarily in the Telecom Services industry within the Communication Services sector. The company, through its subsidiaries, delivers a broad spectrum of communications, technology, information, and entertainment products and services globally. Verizon consists of two primary segments: Verizon Consumer Group (Consumer) and Verizon Business Group (Business), focusing on wireless and wireline services across various spectrums such as broadband, data, video conferencing, network security, and more.

Verizon holds a market capitalization of approximately $164.93 billion. The company's stock sports a trailing P/E ratio of 16.96 and an even more alluring forward P/E ratio of 8.30. Dividend-focused investors might take interest in Verizon's dividend rate of $2.71, yielding 6.92%, coupled with a payout ratio of 1.1569. The telecom behemoth has reported total revenue of $134.24 billion, with net income to common stakeholders at $9.80 billion.

In terms of ownership, insiders hold a very minimal 0.044% of Verizon's stock, whereas institutions have a more significant holding of 65.648%. There are 4.21 billion shares outstanding, and the float stands close to that number at 4.20 billion shares.

Analysts appear to have confidence in Verizon's prospects, suggesting a mean price target of $47.16, with a consensus recommendation of ‘buy'. A total of 24 analysts have weighed in on the stock, which seems to reflect a generally positive outlook on the company's position in the market.

In light of these forecasts and financial details, it is clear that Verizon is setting a deliberate course for sustainable growth. The company's established presence in the telecommunications industry, along with its strategic financial planning and predicted EBITDA growth, positions Verizon to remain a key player in its sector for the foreseeable future .