Verizon To Record Up To $1.9 Billion In Costs For Layoffs, Asset Sales In Q3
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 12 2024
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Source: Benzinga
Severance Charges and Downsizing: Verizon Communications expects to incur a severance charge of $1.7 billion–$1.9 billion in Q3 2024 due to a voluntary separation program, as it plans to downsize 4,800 employees by March 2025 and rationalize certain business assets.
Financial Performance and Acquisitions: Despite a slight revenue growth of 0.6% to $32.8 billion in July, missing estimates, Verizon reported an increase in broadband subscribers and postpaid phone net additions; the company also agreed to acquire Frontier Communications for $20 billion to enhance its fiber and wireless services.
Analyst Views on VZ
Wall Street analysts forecast VZ stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for VZ is 46.42 USD with a low forecast of 43.00 USD and a high forecast of 51.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
4 Buy
10 Hold
0 Sell
Moderate Buy
Current: 39.480
Low
43.00
Averages
46.42
High
51.00
Current: 39.480
Low
43.00
Averages
46.42
High
51.00
About VZ
Verizon Communications Inc. is a holding company. The Company, through its subsidiaries, provides communications, technology, information and streaming products and services to consumers, businesses and government entities. Its Consumer segment provides wireless and wireline communications services. It also provides fixed wireless access (FWA) broadband through its 5G or 4G Long-Term Evolution (LTE) networks portfolio. The Company's Business segment provides wireless and wireline communications services and products, including FWA broadband, data, video and advanced communication services, corporate networking solutions, security and managed network services, local and long-distance voice services and network access to deliver various Internet of Things (IoT) services and products. It provides these products and services to businesses, public sector customers and wireless and wireline carriers across the U.S. and a subset of these products and services to customers around the world.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
