Verizon raises annual forecasts on subscriber gains from new mobile plans

• Annual adjusted profit forecast increased to $4.99-$5.04 per share (from prior guidance), while free cash flow growth estimate raised to 9-10% from about 7%
• Verizon launched 'Simplicity' unlimited wireless plan in June with transparent pricing and fastest 5G access, plus 'Verizon One' bundled wireless-home internet offering
• Q2 revenue of $34.3 billion missed analyst estimates of $35.16 billion due to lower equipment sales as customers hold phones longer, though adjusted profit of $1.30 per share met expectations

Summary

Verizon Raises 2024 Guidance on Subscriber Growth

Verizon Communications raised its full-year financial forecasts on July 24, driven by strong subscriber additions from new mobile plans and loyalty programs. The telecom giant now expects adjusted annual profit of $4.99-$5.04 per share, up from previous guidance, and increased its free cash flow growth forecast to 9-10%, above the prior estimate of approximately 7%.

Subscriber Performance:

The company added 184,000 monthly-bill paying wireless subscribers during the quarter, marking improved momentum under new CEO Dan Schulman's strategic transformation.

Key Strategic Initiatives:

In June, Verizon launched two major offerings:

• Simplicity: An unlimited 5G wireless plan with transparent pricing, fastest 5G network access, and mobile hotspot data, replacing a more complex lineup
• Verizon One: A bundled wireless-home internet package under a single monthly bill, following industry convergence trends

Q2 Financial Results:

• Revenue: $34.3 billion (missed analyst estimates of $35.16 billion)
• Adjusted profit: $1.30 per share (met expectations)
• Revenue shortfall attributed to declining equipment sales as customers extend device upgrade cycles

Market Context:

The strategic pivot aims to improve customer additions after Verizon lagged behind rivals. Management emphasized gaining momentum through simplified offerings and bundled services designed to deepen customer relationships and drive retention.

The improved guidance signals confidence in the company's turnaround strategy, despite broader industry headwinds from slower equipment upgrade cycles.