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Key Takeaways
- Verizon swung to a loss of $2.57 billion or 64 cents a diluted share in the fourth quarter of 2023.
- The company’s earnings were dragged down by a $7.8 billion loss on account of special items.
- Revenue of $35.1 billion was better than expected, but lower compared to $35.25 billion for the same period last year.
Verizon’s (VZ) fourth quarter earnings were dragged into the red due to a $7.8 billion loss on special items despite posting better-than-expected revenue. The company’s shares were up a little over 3% in early trading.
The company reported a loss of $2.57 billion or 64 cents per diluted share for the quarter. The one-time loss comes as Verizon disclosed a $5.8 billion goodwill impairment charge for its business reporting unit, and almost $992 million in mark-to-market adjustments to its pension and employee benefits programs, among other things. Excluding these special items, the company’s adjusted earnings per share would be $1.19.
Even prior to Verizon’s disclosure of the goodwill charges and their potential impact on quarterly results, analyst consensus compiled by Visible Alpha forecast an earnings and revenue contraction.
| Q4 2023 | Analysts’ Estimate for Q4 2023 | Q4 2022 | |
|---|---|---|---|
| Revenue | $35.13 billion | $34.6 billion | $35.25 billion |
| Diluted Earnings (Loss) Per Share (EPS) | (64 cents per share) | $1.06 | $1.56 |
| Net Income | ($2.57 billion) | $4.56 billion | $6.7 billion |
“2023 was a year of change. We have the right assets and the best team in place and are well-positioned for growth in 2024,” said Verizon Chair and CEO Hans Vestberg.