Verizon Q4 Earnings Beat Consensus; Sees FY22 EPS Above Expectations

Verizon Communications Inc VZ reported a fourth-quarter FY21 sales decline of 1.8% year-on-year, to $34.1 billion, beating the consensus of $33.9 billion.
Adjusted EPS of $1.31 beat the consensus of $1.29.
Total Verizon Consumer revenue grew 7.4% Y/Y to $25.7 billion, driven by strong demand for its higher-tier premium mobility and broadband offerings. Consumer wireless service revenues rose 7.7% Y/Y to $14.6 billion, backed by ongoing step-ups to unlimited and premium unlimited plans and the contribution from TracFone.
Consumer wireless retail postpaid churn was 0.94% in Q4, and wireless retail postpaid phone churn was 0.77%. The 667,000 retail postpaid net additions include 336,000 phone net additions.
Total Verizon Business revenues were $7.8 billion in Q4, down 3.0% Y/Y.
Consumer segment EBITDA margin contracted 120 bps to 40.3%, and business segment EBITDA margin decreased 110 bps to 23.5%.
Adjusted EBITDA of $11.8 billion was flat Y/Y.
Outlook: Verizon sees FY22 organic service and other revenue growth of ~3%.
Verizon sees FY22 reported wireless service revenue growth of 9% - 10%.
Verizon sees FY22 adjusted EPS of $5.40 - $5.55, above the consensus of $5.39.
Price action: VZ shares traded higher by 0.45% at $53.20 in premarket on the last check Tuesday.

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