Verizon Q4 Earnings Preview: Will Company Show 5G Growth, Reverse Streak Of Revenue Misses?

Verizon Communications VZ will likely highlight 5G growth and recent partnerships when fourth-quarter financial results are released Friday before the market opens.

Earnings Estimates: Analysts expect the company to report fourth-quarter revenue of $35.32 billion, up from last year's fourth-quarter total of $35.13 billion according to data from Benzinga Pro.

The company has missed analyst estimates for revenue in three straight quarters, and five of the last 10 quarters overall.

Analysts expect Verizon to report fourth-quarter earnings per share of $1.10, up from $1.08 in last year's fourth quarter. The company has beaten analyst estimates for earnings per share in five of the last 10 quarters, while also meeting expectations in four of the last 10 quarters.

Key Items to Watch: There will be several key items analysts and investors will be watching when Verizon reports quarterly financial results.

In December, Verizon experienced a cyberattack linked to China. Either the earnings report or the earnings call will likely cover the impact of the attack and what Verizon has done to fend off future attacks.

The end of net neutrality could be another big topic in the quarterly results. Verizon is one of several companies that could benefit from sweeping changes under the new White House administration and FCC.

In December, Verizon also announced a partnership with Nvidia that will see AI-powered solutions in the 5G space. This includes covering sectors like artificial intelligence, augmented reality, virtual reality, robotics, Internet of Things and streaming.

Analysts were cautiously optimistic after Verizon's third-quarter financial results in October. The company reported wireless service revenue up 2.7% year-over-year. Verizon saw growth for subscribers across several segments and analysts will likely be looking for the same growth on Friday.

Lower revenue from Verizon Business and a drop in net income due to severance charges and headcount reductions hurt the quarterly results and those items will be closely watched Friday.

As a member of the Dow Jones Industrial Average, ETFs that track the stock market index will also be on watch Friday with Verizon's report. The SPDR Dow Jones Industrial Average ETF DIA is up 3% over the last five days with several Dow Jones component companies reporting earlier this week.

Price Action: Verizon stock is up 1% to $39.27 on Thursday versus a 52-week trading range of $37.58 to $45.36. Verizon stock is down 2.3% over the last year.

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