Verizon stock before Q4 earnings: Sensible Buy or Risky Move?

Verizon stock before Q4 earnings is a question many investors watch closely because quarterly results can shift sentiment fast—especially for a mega-cap telecom with steady cash flows, heavy network spending, and fierce competition.

This rewritten report (in English) explains what’s shaping Verizon Communications Inc. (VZ) ahead of its fourth-quarter 2024 earnings report (scheduled for Jan. 24, 2025), what analysts were expecting, and what key risks and opportunities could matter most for the stock.

Quick SEO Outline (Reader Roadmap)

Section	What You’ll Learn
1) Earnings setup	Consensus expectations, estimate trends, and why they matter
2) Earnings surprise pattern	Recent “beats,” and why that doesn’t guarantee the next one
3) Business drivers	Wireless, broadband, fiber buildout, and plan changes
4) Network + AI initiatives	Fiber trials, AI workloads, edge computing, and enterprise use-cases
5) Segment view	Consumer vs. Business revenue expectations
6) Pressure points	Promotions, margins, capex, and wireline challenges
7) Stock performance + valuation	Relative performance and what “cheap” might mean
8) Bull vs. bear case	Balanced view of long-term strengths and near-term risks
9) FAQs	Clear answers to common questions

1) What Verizon Was Expected to Report (Q4 2024 Preview)

Verizon Communications Inc. (ticker: VZ) was set to release fourth-quarter 2024 earnings on Jan. 24, 2025. According to the syndicated Zacks-based preview, the consensus estimate at that time was about $35.4 billion in quarterly sales and $1.09 in earnings per share (EPS).

Why do these two numbers matter so much? Revenue tells you whether Verizon is expanding the size of its business—through wireless service, device sales, broadband, and enterprise connectivity. EPS, meanwhile, is where investors feel the “profit story”: operating costs, promotional spending, interest expense, depreciation, and the impact of ongoing network investment all show up here.

The same preview also noted that Verizon’s annual EPS expectations had edged down slightly over the prior month—moving from about $4.60 to $4.59 for 2024 and $4.71 to $4.70 for 2025. That kind of change might look tiny, but it can signal a softer near-term outlook or a cautious stance on margins.

Why “Estimate Trend” Can Move a Stock Before Earnings

In the days leading up to earnings, many investors track whether analysts are nudging forecasts higher or lower. Rising estimates can create a friendlier setup: the market starts expecting better results, and the stock may gain momentum. Falling estimates can do the opposite by feeding a cautious narrative—especially if the market thinks competition or spending is getting worse.

With Verizon, this matters even more because telecom often trades like a “steady” sector: not flashy, but dependable. When the dependable story starts to wobble—even slightly—price reactions can be sharper than people expect.

2) Verizon’s Recent Earnings Surprise Track Record

The preview described Verizon as having a modest but consistent pattern of beating earnings expectations in the prior four quarters, delivering an average surprise of about 1.34%, including a 0.85% beat in the most recently reported quarter at the time.

Here’s the catch: a history of “beats” doesn’t mean the next quarter will also beat. Sometimes a company beats because expectations were set too low. Other times, it beats due to one-time timing benefits (like expense shifts) rather than a stronger underlying business.

“Earnings Whispers” and the Setup Mentioned in the Preview

The same write-up said its model did not predict an earnings beat for Verizon’s Q4. It cited an “Earnings ESP” of -0.40% and a Zacks Rank #3 as part of the reasoning.

If you’re not familiar with those terms, the practical idea is simple: some ranking systems try to estimate whether the next reported earnings number is more likely to land above or below the consensus. In this case, the setup was described as not especially supportive of a beat.

3) The Big Business Drivers Shaping Verizon’s Quarter

Telecom results usually come down to a few core levers:subscriber additions, churn (how many customers leave), average revenue per user (ARPU), and cost control.Verizon’s strategy heading into the quarter leaned on plan design, broadband growth, and network quality.

Wireless and Home Broadband: “Mix-and-Match” Plans

The preview highlighted Verizon’s mix-and-match pricing in wireless and home broadband plans. The basic goal is to let customers customize what they pay for—often with options tied to premium unlimited tiers and perks. Historically, such packaging can push customers toward higher-value plans and potentially reduce churn if customers feel the plan fits them better.

Verizon also offered bundles for streaming services, framed as giving customers flexibility—so they can select content and “pay only for what they want.” That’s a smart message in a world where people are increasingly tired of paying for too many subscriptions.

Fiber Expansion and Digital Inclusion

The same source noted Verizon’s efforts to expand high-speed fiber broadband connections in key areas, positioning this as a step toward digital inclusion and narrowing the urban-rural digital divide.

Fiber is important for two reasons:

• Customer stickiness: High-quality home internet can keep households with a provider longer.
• Future capacity: Fiber backhaul supports wireless networks too, which matters as 5G usage grows.

4) The “AI Angle”: Fiber Trials, Big Data, and Edge Computing

One of the more modern themes in the preview was Verizon’s push to show that its network isn’t just for phones—it’s built for the next wave of heavy data use, including AI workloads.

Boston Metro Fiber Trial and High-Capacity Transport

The article described a trial across a live metro network using Ciena’s WaveLogic 6 Extreme coherent optical solution, traveling through multiple ROADMs (reconfigurable optical add-drop multiplexers). It reported that Verizon transferred 1.6 Tb/s of data over a 118 km Boston metro route on a single-carrier wavelength.

Without getting too technical: this kind of trial is Verizon saying, “Our fiber network can handle huge volumes of data reliably.” That’s a relevant message because modern AI—especially generative AI—can require massive data movement between data centers, edge locations, and end users. If Verizon can be the “pipes” for that future, it can strengthen its case with enterprise customers.

Collaboration With NVIDIA for Real-Time Generative AI

The preview also noted a collaboration with NVIDIA to power real-time generative AI applications over Verizon’s 5G private network, using Verizon’s private mobile edge compute approach alongside NVIDIA’s AI capabilities.

Put simply: private 5G plus edge computing can let businesses run AI close to where data is generated—think factories, stadiums, warehouses, ports, and hospitals—so responses happen faster. If those use-cases expand, Verizon’s enterprise business could benefit.

5) Consumer vs. Business: What Revenue Expectations Said

The preview provided segment-level revenue expectations:

• Consumer segment: consensus around $27.29B, with the model projecting $27.17B.
• Business segment: consensus around $7.52B, with the model projecting $7.53B.

This breakdown matters because Verizon is often judged on the strength of its consumer wireless base, but long-term upside may come from business services—private networks, advanced connectivity, and edge computing solutions.

Open RAN Deployment: A Note on Network Architecture

The preview described Verizon deploying an Open RAN-based Distributed Antenna System (DAS) at the Austin Convention Center and the University of Texas, framing it as a commercial deployment with multi-vendor interoperability via O-RAN interfaces.

Open RAN is often discussed as a way to increase flexibility in network equipment choices and, over time, potentially improve cost efficiency. In the near term, deployments can be more about learning, testing reliability, and proving the concept in real-world environments.

6) The Pressure Points: Why Margins Can Feel Squeezed

Verizon’s story isn’t only about growth initiatives. The preview also listed several forces that can weigh on profitability:

High Operating Costs and 5G Investment

Ongoing infrastructure investment and operational expenses tied to 5G deployment were described as potential reasons for softer margins.

Telecom is capital intensive by nature. That means Verizon often spends huge sums to maintain and expand network coverage and capacity. The upside is a stronger network; the downside is that depreciation, interest costs, and operating expenses can limit margin expansion.

Promotional Spending and Competitive Discounts

The report also pointed to promotional offers and discounts as another likely margin headwind.

This is the “invisible tug-of-war” in U.S. wireless: carriers compete hard for subscribers, and promotions can help win customers—but they can also lower the profit per customer. When competition heats up, you can see improved subscriber numbers but weaker profitability, which leaves investors asking, “Was it worth it?”

Wireline Challenges: Access Line Declines and VoIP Competition

The preview stated Verizon’s wireline division has faced persistent losses in access lines due to competition from VoIP providers and aggressive “triple-play” cable offerings (voice, data, video).

This is a key structural issue: traditional phone lines have been in long-term decline. Even if wireless and fiber grow, wireline pressure can still drag on the overall picture—especially if investors are looking for a clean growth narrative.

Capex Load: 5G Ultra Wideband and Fiber Buildout

Verizon’s capital spending was described as elevated due to continued 5G Ultra-Wideband buildout, deployment of fiber assets, and network architecture upgrades (including Intelligent Edge Network initiatives).

For long-term investors, the big question is whether today’s spending leads to tomorrow’s durable competitive advantage. If it does, capex can be seen as an investment. If it doesn’t, capex can look like a treadmill—always running, never arriving.

7) Stock Performance and What “Cheap” Looked Like

One-Year Price Performance vs. Peers

In the syndicated summary, Verizon shares were described as down about 2% over the prior year, while the broader industry rose about 19.8%. The same comparison said Verizon underperformed peers like AT&T and T-Mobile during that period.

Underperformance can mean two different things:

• Market skepticism: Investors may be worried about growth and margin pressure.
• Potential opportunity: If fundamentals stabilize, a lagging stock can catch up.

Valuation: Forward P/E Mentioned in the Preview

From a valuation standpoint, the piece described Verizon as trading around 8.23x forward earnings, below an industry figure of 12.47x and below the stock’s own mean of 9.22x.

A lower P/E can be attractive, but it can also be a warning label. Sometimes a stock is “cheap” because the market believes earnings will be pressured or growth will be slow. The smartest way to interpret this is not “cheap equals buy,” but rather “cheap equals investigate.”

8) Sensible Buy or Risky Move? A Balanced Bull vs. Bear View

The Bull Case: Why Some Investors Stay Interested

The preview argued that Verizon’s steady investment in fiber infrastructure and its technology initiatives could help bridge the digital divide and strengthen connectivity nationwide, potentially supporting subscriber growth, stronger ARPU, and better broadband penetration over time.

In plain terms, the bullish argument often looks like this:

• Scale + network quality: Verizon is one of the biggest players, and network reliability can be a long-term moat.
• Fiber and 5G as foundations: These are not “nice-to-haves”—they’re core infrastructure for the next decade.
• Enterprise upside: Private 5G, edge compute, and AI-related connectivity may unlock higher-value business services.
• Valuation support: Lower forward multiples can appeal to value-focused investors.

The Bear Case: Why Caution Was Emphasized

The same source warned that heavy capital expenditures and network expansion can erode margins, and that the U.S. wireless market is highly competitive and close to saturated. It also noted the shift away from traditional linear video toward over-the-top offerings as part of the broader industry pressure.

The bearish argument is usually built on these points:

• Promo intensity: Competitive discounts can keep pressure on profitability.
• Capex gravity: High spending can limit free cash flow growth in the near term.
• Wireline drag: Access line declines and structural changes can keep parts of the business shrinking.
• Investor perception: Falling estimates can create a negative narrative going into earnings.

What the Source Concluded (Paraphrased)

The preview’s bottom line was cautious: it suggested Verizon looked “middle of the road,” encouraged new investors to be careful, and indicated that, due to declining earnings estimates and negative perception, it might not be the most prudent moment to bet aggressively on the stock.

At the same time, it also emphasized that a single quarter may not be decisive for long-term shareholders, and that existing holders might choose to stay put—especially given valuation and the potential long-term benefits of network modernization and more cloud-native architecture.

Important note: This article is informational only and not financial advice. If you’re considering investing, it’s wise to research multiple sources, understand your own risk tolerance, and talk to a qualified adult/financial professional if needed.

FAQs About Verizon stock before Q4 earnings

1) When was Verizon scheduled to report Q4 2024 earnings?

Verizon was scheduled to report fourth-quarter 2024 earnings on Jan. 24, 2025.

2) What were the consensus expectations for revenue and EPS?

The preview cited a consensus estimate of about $35.4 billion in sales and $1.09 in EPS for the quarter.

3) Did Verizon have a recent history of beating earnings estimates?

Yes. The source said Verizon exceeded expectations in each of the previous four quarters, with an average surprise of about 1.34%.

4) What were the biggest positives highlighted ahead of earnings?

Positives included plan flexibility (mix-and-match), fiber expansion, network trials demonstrating high-capacity data transport, and enterprise-focused initiatives like private 5G and edge compute collaborations.

5) What were the biggest risks or headwinds?

The preview pointed to high operating costs, heavy capex for 5G and fiber, promotional discounts that can pressure margins, and ongoing wireline challenges due to competition and access-line declines.

6) Why did the stock look “cheap” compared to the industry?

The write-up said Verizon traded around 8.23x forward earnings, below an industry figure of 12.47x and below its own mean of 9.22x.

Conclusion

Going into earnings, Verizon’s story was a mix of sturdy infrastructure ambition and real-world competitive pressure. On one hand, fiber buildouts, high-capacity transport trials, and enterprise AI/edge initiatives suggest Verizon is preparing for a data-hungry future. On the other hand, the U.S. wireless market remains intensely competitive, promotions can pinch margins, and network investments require constant spending.

If you’re tracking Verizon stock before Q4 earnings, the smartest approach is to watch what management says about subscriber trends, pricing discipline, capex plans, and whether AI/enterprise initiatives are turning into measurable revenue—not just exciting headlines.

#Verizon #VZStock #EarningsPreview #Telecom #SlimScan #GrowthStocks #CANSLIM