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January 24, 2025 - Verizon Communications (NYSE:VZ) has unveiled its fourth-quarter 2024 earnings results, company guidance for 2025 and dividend announcement.
For the full-year 2024, Verizon reports total operating revenue of $134.8 billion, up modestly 0.6% from 2023. Wireless service contributes $20 billion to total revenue. The earning comes at $4.14 per share compared to $2.75 in 2023. For adjusted EPS, not include special items, was $4.59 only compared to $4.71 in previous year.
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The telecom company boasts robust subscriber growth, the highest in five years, added nearly 1 million subscribers in Q4 2024. The growth was driven by initiatives such as iPhone 16 trade-in deals, Black Friday promotions and myPlan offerings.
Verizon offers solid footing as an income stock by announcing quarterly dividend distribution schedule that brings its dividend yield to 6.9% based on an annualized dividend of $2.71 per share, paid quarterly. This marks the 18th consecutive year of dividend distribution by Verizon.
2025 Projection
The giant telecom expects adjusted EBITDA growth between 2-3% and cash flow from operations to be between $35 billion and $37 billion and capital expenditures to be around $17.5 billion to $18.5 billion.
Related to the expenditures, Verizon plans to invest significantly for 5G infrastructure, particularly in the C-band spectrum, to compete with AT&T and T-Mobile. Verizon prepares itself to serve its subscriber base to its wireless service that is anticipated to double up to 9 million by 2028.
Verizon expects its profit to grow between 0-3% for 2025 and free cash flow to be in the range of $17.5-18.5 billion. The market welcomes the announcement by appreciating the stock price in premarket trading.
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This article first appeared on GuruFocus.