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Jun 30, 2023

Verizon Q2 2023 Earnings Report

Verizon's Q2 2023 results were highlighted by wireless service revenue growth and increased cash flow.

Key Takeaways

Verizon reported a decrease in total operating revenue to $32.6 billion, but experienced growth in wireless service revenue. The company also saw an increase in cash flow from operations. EPS was $1.10, and adjusted EPS was $1.21. Total broadband net additions were 418,000, and the company is focused on extending network leadership.

Wireless service revenue grew by 3.8 percent year over year.

Total broadband net additions reached 418,000.

First-half cash flow from operations increased to $18.0 billion.

Business reported 308,000 wireless retail postpaid net additions.

Total Revenue
$32.6B
Previous year: $33.8B
-3.5%
EPS
$1.21
Previous year: $1.31
-7.6%
Consumer Wireless Postpaid Conn.
92.47M
Previous year: 91.48M
+1.1%
Consumer Fios Internet Conn.
6.85M
Previous year: 6.63M
+3.4%
Consumer Wireless Retail Net Adds
304K
Previous year: -145K
-309.7%
Gross Profit
$19.8B
Previous year: $19.4B
+2.4%
Cash and Equivalents
$4.8B
Previous year: $1.86B
+158.6%
Free Cash Flow
$7.95B
Total Assets
$380B
Previous year: $370B
+2.6%

Verizon

Verizon

Verizon Revenue by Segment

Forward Guidance

Verizon continues to expect total wireless service revenue growth of 2.5 percent to 4.5 percent, adjusted EBITDA of $47.0 billion to $48.5 billion, adjusted EPS of $4.55 to $4.85, adjusted effective income tax rate in the range of 22.5 percent to 24.0 percent, and capital spending in the range of $18.25 billion to $19.25 billion for 2023.

Positive Outlook

  • Expecting total wireless service revenue growth of 2.5% to 4.5%.
  • Anticipating adjusted EBITDA between $47.0 billion and $48.5 billion.
  • Projecting adjusted EPS to be in the range of $4.55 to $4.85.
  • Expecting adjusted effective income tax rate between 22.5% and 24.0%.
  • Planning for capital spending between $18.25 billion and $19.25 billion.

Challenges Ahead

  • Cannot predict the special items that could arise.
  • Unable to reconcile adjusted forecasts to GAAP forecasts without unreasonable effort.
  • Future results are subject to risks and uncertainties.
  • Competition in the markets may impact results.
  • Adverse conditions in the U.S. and international economies may impact results.

Revenue & Expenses

Visualization of income flow from segment revenue to net income