Verizon Communications Inc. (VZ) Bundle
A Brief History of Verizon Communications Inc.
Verizon Communications Inc. has evolved significantly since its inception, marking its presence as a leading telecommunications company in the United States. As of 2024, Verizon continues to build on its legacy of innovation and expansion in the telecom sector.
Financial Overview as of 2024
In the first nine months of 2024, Verizon reported net income attributable to the company of $12.5 billion, compared to $14.3 billion in the same period of 2023. The earnings per share (EPS) for the nine months ended September 30, 2024, was $2.96.
| Financial Metric | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Net Income | $12.5 billion | $14.3 billion |
| EPS | $2.96 | $3.40 |
| Dividends Paid | $8.4 billion | $8.2 billion |
Debt and Financing Activities
As of September 30, 2024, Verizon had a total debt outstanding of approximately $148.4 billion. The company reported total interest expense for the nine months ended September 30, 2024, of $5.0 billion, reflecting an increase from $3.9 billion in the previous year.
| Debt Metric | 2024 | 2023 |
|---|---|---|
| Total Debt | $148.4 billion | $147.8 billion |
| Total Interest Expense | $5.0 billion | $3.9 billion |
Key Developments
Verizon has made strides in technology and service offerings, particularly in the expansion of its 5G network. The company invested heavily in 5G infrastructure, allocating approximately $12 billion for capital expenditures in 2024. This investment is aimed at enhancing service delivery and expanding coverage across urban and rural areas.
Market Position and Competition
Verizon holds a significant market share in the U.S. telecommunications sector, competing with other major players like AT&T and T-Mobile. As of 2024, Verizon's wireless subscriber base reached approximately 120 million, maintaining its status as one of the largest wireless carriers in the country.
Future Outlook
Looking ahead, Verizon aims to continue its growth trajectory through strategic investments in technology and expanding its service offerings. The company is focusing on enhancing customer experience and integrating new technologies, such as artificial intelligence and the Internet of Things (IoT), into its service portfolio.
A Who Owns Verizon Communications Inc. (VZ)
Major Shareholders
As of 2024, Verizon Communications Inc. (VZ) has a diverse ownership structure with significant institutional and individual shareholders. The top institutional investors include:
| Institution | Ownership Percentage | Shares Owned |
|---|---|---|
| The Vanguard Group, Inc. | 8.5% | 364 million |
| BlackRock, Inc. | 7.8% | 335 million |
| State Street Corporation | 4.5% | 193 million |
| Wellington Management Group LLP | 2.9% | 125 million |
| Fidelity Investments | 2.4% | 103 million |
Insider Ownership
Insider ownership at Verizon is relatively modest, with key executives and board members holding a combined total of approximately 0.5% of the company's shares. Significant insiders include:
- Hans Vestberg, Chairman and CEO: 1.2 million shares
- Matthew Ellis, CFO: 0.5 million shares
- Other executives: 1.5 million shares combined
Public Ownership
The remaining shares of Verizon are owned by the general public, including retail investors. Approximately 77% of Verizon's shares are held by institutional investors, while the rest is split between individual investors and other entities.
Recent Share Performance
As of September 30, 2024, Verizon's stock price was $30.25 per share, reflecting a year-to-date decline of approximately 8%. The company has a market capitalization of about $126 billion.
Dividends and Financial Performance
Verizon has consistently paid dividends, with a declared dividend of $2.0075 per share in 2024. The total cash dividends paid during the nine months ended September 30, 2024, amounted to $8.4 billion.
| Financial Metric | 2024 (Nine Months Ended) | 2023 (Nine Months Ended) |
|---|---|---|
| Net Income | $12.5 billion | $14.3 billion |
| Total Revenue | $75.3 billion | $74.7 billion |
| Free Cash Flow | $14.5 billion | $14.6 billion |
| Capital Expenditures | $12.0 billion | $14.2 billion |
Future Outlook
Verizon continues to focus on expanding its 5G network and improving customer service, with expected capital expenditures for 2024 between $17.0 billion and $17.5 billion. The company's strategic initiatives aim to enhance shareholder value and maintain a competitive edge in the telecommunications sector.
Conclusion on Ownership Structure
Verizon's ownership is characterized by strong institutional support, a modest level of insider ownership, and a commitment to returning value to shareholders through dividends and strategic growth initiatives.
Verizon Communications Inc. (VZ) Mission Statement
The mission statement of Verizon Communications Inc. focuses on delivering innovative technology and communications solutions that empower individuals and businesses. Verizon aims to enable seamless connectivity and enhance customer experiences through advanced wireless and wireline networks.
Core Values
- Customer Commitment: Prioritizing customer satisfaction and trust.
- Innovation: Investing in technology and services that lead the industry.
- Integrity: Conducting business with honesty and transparency.
- Diversity and Inclusion: Fostering a diverse workforce that reflects the communities served.
- Sustainability: Committing to environmentally responsible practices.
Financial Performance Overview
As of September 30, 2024, Verizon reported the following financial statistics:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Income (in millions) | $3,411 | $4,884 | -30.1% |
| Operating Revenues (in millions) | $33,330 | $33,336 | -0.02% |
| EBITDA (in millions) | $10,432 | $12,056 | -13.5% |
| Earnings Per Share | $0.78 | $1.13 | -30.9% |
| Dividends Declared (in millions) | $2,852 | $2,796 | 2.0% |
Service Offerings
Verizon provides a comprehensive range of services including:
- Wireless Communication
- Fios Internet and TV
- Corporate Networking Solutions
- IoT Services
- Managed Network Services
Market Position
Verizon is a leading telecommunications provider in the United States, with a significant market share in both wireless and wireline segments. The company’s focus on 5G technology and fiber-optic networks positions it favorably for future growth.
Recent Developments
In September 2024, Verizon announced plans to acquire Frontier Communications for $38.50 per share, subject to regulatory approvals. This strategic move is expected to enhance Verizon's broadband capabilities and expand its customer base.
Key Financial Metrics
Verizon's key financial metrics for the nine months ended September 30, 2024, include:
| Metric | 2024 | 2023 | Change (%) |
|---|---|---|---|
| Operating Revenues (in millions) | $99,107 | $98,844 | 0.3% |
| Net Income (in millions) | $12,835 | $14,668 | -12.5% |
| Free Cash Flow (in millions) | $14,461 | $14,634 | -1.2% |
| Capital Expenditures (in millions) | $12,019 | $14,164 | -15.2% |
Conclusion
Verizon Communications Inc. continues to focus on its mission of providing reliable communication services while adapting to changing market demands and investing in future technologies.
How Verizon Communications Inc. (VZ) Works
Overview of Operations
Verizon Communications Inc. operates through three primary segments: Consumer, Business, and Corporate. As of September 30, 2024, the total operating revenues across these segments were as follows:
| Segment | Three Months Ended September 30, 2024 (in millions) | Three Months Ended September 30, 2023 (in millions) | Change (%) |
|---|---|---|---|
| Consumer | $25,400 | $25,300 | 0.4 |
| Business | $7,351 | $7,527 | (2.3) |
| Total Operating Revenues | $32,751 | $32,827 | (0.2) |
Financial Performance
For the nine months ended September 30, 2024, Verizon reported the following financial highlights:
| Financial Metric | 2024 (in millions) | 2023 (in millions) | Change (%) |
|---|---|---|---|
| Net Income | $12,835 | $14,668 | (12.5) |
| Operating Income | $22,580 | $21,976 | 2.7 |
| EBITDA | $32,694 | $31,709 | 3.1 |
Debt and Financing
As of September 30, 2024, Verizon's total debt stood at $150.6 billion, comprising:
- Unsecured Debt: $126.4 billion
- Secured Debt: $24.3 billion
During the nine months ending September 30, 2024, Verizon issued $23.6 billion in commercial paper and repaid $23.6 billion, resulting in no outstanding commercial paper as of September 30, 2024.
Capital Expenditures
Verizon has continued to invest significantly in infrastructure and technology, with capital expenditures totaling $12.0 billion for the nine months ended September 30, 2024. The expected capital expenditures for the full year 2024 are projected to range between $17.0 billion and $17.5 billion.
Cash Flow Analysis
Verizon's cash flows for the nine months ended September 30, 2024, are summarized as follows:
| Cash Flow Type | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Net Cash Provided by Operating Activities | $26,480 | $28,798 |
| Net Cash Used in Investing Activities | ($13,113) | ($15,608) |
| Net Cash Used in Financing Activities | ($11,500) | ($11,600) |
Segment Details
Verizon's Consumer segment focuses on providing wireless services, Fios broadband, and video services. The Business segment offers wireless and wireline communications services, including IoT solutions. The Corporate segment includes device insurance programs and other unallocated expenses.
Recent Developments
Verizon announced a voluntary separation program for approximately 4,800 management employees, resulting in a severance charge of $1.7 billion.
Subscriber Metrics
As of September 30, 2024, Verizon reported the following subscriber metrics:
| Subscriber Type | Count (in thousands) | Change (%) |
|---|---|---|
| Wireless Retail Postpaid | 30,532 | 3.7 |
| Fios Internet | 397 | 3.7 |
| Total Broadband | 2,157 | 43.9 |
Churn Rates
Verizon's churn rates for the wireless retail postpaid segment were:
| Period | Churn Rate (%) |
|---|---|
| Q3 2024 | 1.45 |
| Q3 2023 | 1.47 |
Dividend Payments
Verizon declared dividends totaling $8.4 billion for the nine months ended September 30, 2024, compared to $8.2 billion for the same period in 2023.
Conclusion on Financial Health
Verizon continues to maintain a strong financial position, focusing on strategic investments and managing its debt effectively while adapting to changing market dynamics.
How Verizon Communications Inc. (VZ) Makes Money
Revenue Streams
Verizon Communications Inc. generates revenue through multiple streams, primarily divided into two segments: Consumer and Business. As of September 30, 2024, Verizon reported the following revenue breakdown:
| Segment | Three Months Ended September 30, 2024 (in millions) | Three Months Ended September 30, 2023 (in millions) | Nine Months Ended September 30, 2024 (in millions) | Nine Months Ended September 30, 2023 (in millions) |
|---|---|---|---|---|
| Consumer | $25,360 | $25,257 | $75,344 | $74,672 |
| Business | $7,351 | $7,527 | $22,027 | $22,504 |
| Total Operating Revenues | $32,711 | $32,784 | $97,371 | $97,176 |
Consumer Segment
The Consumer segment includes wireless services, Fios (fiber-optic internet and video), and wireless equipment sales. Key revenue sources are:
- Wireless Service Revenue: $16,377 million for Q3 2024, up from $15,963 million in Q3 2023.
- Fios Revenue: $2,916 million for Q3 2024, slightly up from $2,897 million in Q3 2023.
- Wireless Equipment Revenue: $4,478 million for Q3 2024, down from $4,902 million in Q3 2023.
Business Segment
The Business segment provides services to companies and government entities. Its revenue is categorized as follows:
- Enterprise and Public Sector: $3,538 million for Q3 2024, down from $3,787 million in Q3 2023.
- Business Markets and Other: $3,263 million for Q3 2024, up from $3,184 million in Q3 2023.
- Wholesale: $550 million for Q3 2024, down from $556 million in Q3 2023.
Operating Expenses
Operating expenses for Verizon are substantial, driven largely by costs associated with providing services and selling equipment. For Q3 2024, the total operating expenses were:
| Expense Type | Three Months Ended September 30, 2024 (in millions) | Three Months Ended September 30, 2023 (in millions) |
|---|---|---|
| Cost of Services | $4,567 | $4,419 |
| Cost of Wireless Equipment | $4,850 | $5,133 |
| Selling, General, and Administrative | $4,928 | $4,886 |
| Depreciation and Amortization | $3,411 | $3,272 |
| Total Operating Expenses | $17,756 | $17,710 |
Net Income and Earnings Per Share
Verizon's net income for Q3 2024 was reported at $3,411 million, with earnings per share (EPS) of $0.78. In comparison, the net income for Q3 2023 was $4,884 million, resulting in an EPS of $1.13.
Capital Expenditures
Capital expenditures are crucial for Verizon's growth, primarily focused on network enhancements. For the nine months ended September 30, 2024, capital expenditures totaled $12.0 billion, down from $14.2 billion in the same period of 2023.
Cash Flow and Financial Health
Cash flows from operating activities for the nine months ended September 30, 2024, were $26,480 million, a decrease from $28,798 million in 2023. This decline is attributed to higher cash income taxes and interest expenses.
Debt Management
Verizon's total debt management strategy includes various financing arrangements. As of September 30, 2024, Verizon had a total debt of approximately $143 billion, which is being actively managed through repayments and refinancing efforts.
Conclusion
Verizon Communications Inc. continues to leverage its robust service offerings across consumer and business segments to generate revenue. The company remains focused on managing its expenses and capital investments to sustain growth and profitability.
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Article updated on 8 Nov 2024
Resources:
- Verizon Communications Inc. (VZ) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Verizon Communications Inc. (VZ)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Verizon Communications Inc. (VZ)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.