Will VZ's Q1 2025 earnings beat forecasts?
3/28/2025 04:20pm
**Verizon's Q1 2025 earnings are unlikely to beat forecasts based on current estimates and market sentiment.** Here's a detailed analysis:
1. **Earnings Projection**: The estimated EPS for Q1 2025 is $1.14, which represents a 0.87% decrease from the same quarter last year. This suggests a potential decline in earnings, making it unlikely for Verizon to beat expectations.
2. **Revenue Projection**: The estimated revenue for the quarter is $33.49 billion, which is slightly higher than the previous year's same quarter. However, the overall tone of the market is cautious, and the company's challenges, such as competition and evolving consumer behaviors, indicate that revenue may not exceed expectations.
3. **Market Sentiment**: Recent news articles highlight that Verizon's stock has experienced a price drop due to heightened competition and changing consumer behaviors. Additionally, the stock has not performed well compared to the broader market, trailing the S&P 500 in recent sessions. This negative sentiment could reflect investor expectations of subpar earnings.
4. **Historical Performance**: Verizon's historical earnings performance has shown a trailing EPS of $4.14 for Q1 2024, with a P/E ratio of 10.61. The projected EPS of $1.14 for Q1 2025 is significantly lower, indicating a potential decline in earnings per share, which could fall short of analyst forecasts.
5. **Strategic Position**: Despite its challenges, Verizon's strong market position and cash flow growth suggest a resilient business model. However, these factors do not guarantee an earnings beat.
In conclusion, given the projected earnings decline, cautious market sentiment, and the company's current strategic position, it is more likely that Verizon's Q1 2025 earnings will not beat forecasts. Investors should monitor the company's performance closely, especially considering the evolving industry dynamics and the potential impact on future earnings.