January 24, 2025 12:44 GMT
COMMUNICATIONS: Verizon Q4 Results
COMMUNICATIONS
VZ Baa1/BBB+/A-
Looks like a solid report from mostly slight Q4 beats to lower leverage to strong FY25 guidance.
- Q4 revs +1.6% YoY with wireless service revs +3.1% (both +1% vs. BBG cons).
- Driven by slight beats in both the consumer/business segments.
- Postpaid phone net adds of 568k (vs. 498k cons), BB net adds 408k (vs. 230k cons).
- Q4 EBITDA +2.1% YoY (-0.8% vs. cons). Q4 FCF of USD 5.4bn (+14% vs. cons) inclusive of one-time Vertical Bridge tower deal.
- Reported net unsec leverage of 2.3x from 2.5x at Q3 and 2.6x at FY23. BBG cons was 2.8x.
- FY guidance strong with WSR +2-2.8% (vs. +1% cons), EBITDA +2-3.5% (vs. +2.5% cons) and FCF of USD 17.5bn-18.5bn (vs. USD 18.1bn cons).
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