Verizon unveils strong annual forecast, says it is "well-positioned" for growth

Investing.com -- Verizon has unveiled an annual earnings forecast range that was above analyst estimates at the midpoint, as the telecoms group said it was "well-positioned" for growth in 2024.

Adjusted profit per share for the current year is seen at between $4.50 to $4.70. Bloomberg consensus projections had seen the outlook at $4.58.

Shares in the company moved higher in premarket U.S. trading on Tuesday.

The firm added 449,000 new monthly bill-paying phone subscribers for the three months ended on Dec. 31, beating predictions of 223,800, according to FactSet data cited by Reuters.

When coupled with price hikes implemented earlier in the year, the additions helped partially offset a downturn in wireless equipment revenue. Operating sales of $35.1 billion in the fourth quarter beat expectations of $34.49B.

The group reported a net loss of $2.6B, due in large part to the impact of a $5.8B write-down related to its business-facing unit and pension liabilities. In the fourth quarter of 2022, Verizon (NYSE:VZ) posted consolidated net income of $6.7B.

Meanwhile, free cash flow -- a closely-watched gauge of possible dividend payouts -- came in at to $18.7B at the end of 2023, up from $14.1B in 2022.

"2023 was a year of change. We have the right assets and the best team in place and are well-positioned for growth in 2024," said Chief Executive Hans Vestberg in a statement.

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