Erste Group Bank Has Bearish Outlook for VZ FY2027 Earnings

Verizon Communications Inc. (NYSE:VZ) – Analysts at Erste Group Bank decreased their FY2027 earnings per share (EPS) estimates for Verizon Communications in a research report issued on Wednesday, October 21st. Erste Group Bank analyst H. Engel now forecasts that the cell phone carrier will earn $5.25 per share for the year, down from their previous estimate of $5.26. The consensus estimate for Verizon Communications’ current full-year earnings is $5.03 per share.

Verizon Communications (NYSE:VZ) last posted its quarterly earnings results on Friday, July 24th. The cell phone carrier reported $1.30 EPS for the quarter, beating the consensus estimate of $1.27 by $0.03. Verizon Communications had a return on equity of 19.48% and a net margin of 11.64%. The company had revenue of $34.25 billion during the quarter, compared to analysts’ expectations of $35.16 billion. During the same quarter in the previous year, the business earned $1.22 EPS. The firm’s revenue was down .7% on a year-over-year basis.

VZ has been the subject of a number of other reports. Weiss Ratings restated a “buy (b)” rating on shares of Verizon Communications in a report on Wednesday, August 26th. Royal Bank Of Canada increased their price target on shares of Verizon Communications from $46.00 to $47.00 and gave the stock a “sector perform” rating in a research note on Monday, July 27th. Scotiabank decreased their price target on shares of Verizon Communications from $51.50 to $50.00 and set a “sector outperform” rating on the stock in a report on Friday, October 9th. TD Cowen boosted their price objective on shares of Verizon Communications from $54.00 to $56.00 and gave the company a “buy” rating in a research note on Monday, July 27th. Finally, Morgan Stanley upped their price objective on Verizon Communications from $50.00 to $52.00 and gave the stock an “equal weight” rating in a report on Monday, July 27th. Eight investment analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $50.80.

Verizon Communications Trading Up 3.7%

Shares of VZ stock opened at $45.16 on Friday. The firm has a market cap of $187.61 billion, a P/E ratio of 8.93, a PEG ratio of 1.66 and a beta of 0.26. Verizon Communications has a 1-year low of $38.39 and a 1-year high of $51.68. The company has a debt-to-equity ratio of 1.36, a current ratio of 0.60 and a quick ratio of 0.57. The firm’s 50-day simple moving average is $47.65 and its 200-day simple moving average is $46.66.

Hedge Funds Weigh In On Verizon Communications

A number of hedge funds have recently made changes to their positions in the business. Robinswood Financial LLC purchased a new position in Verizon Communications in the first quarter valued at about $27,000. Lam Group Inc. acquired a new position in shares of Verizon Communications during the first quarter worth about $28,000. Gill Capital Partners LLC boosted its position in shares of Verizon Communications by 74.6% in the second quarter. Gill Capital Partners LLC now owns 620 shares of the cell phone carrier’s stock worth $26,000 after buying an additional 265 shares during the period. Bare Financial Services Inc boosted its position in shares of Verizon Communications by 37.4% in the second quarter. Bare Financial Services Inc now owns 841 shares of the cell phone carrier’s stock worth $36,000 after buying an additional 229 shares during the period. Finally, Frazier Financial Advisors LLC boosted its position in shares of Verizon Communications by 32.7% in the first quarter. Frazier Financial Advisors LLC now owns 888 shares of the cell phone carrier’s stock worth $45,000 after buying an additional 219 shares during the period. Hedge funds and other institutional investors own 62.06% of the company’s stock.

Insider Transactions at Verizon Communications

In related news, CEO Kyle Malady sold 1,100 shares of the firm’s stock in a transaction that occurred on Tuesday, October 20th. The shares were sold at an average price of $44.48, for a total value of $48,928.00. Following the transaction, the chief executive officer owned 99,966 shares in the company, valued at approximately $4,446,487.68. This trade represents a 1.09% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 9,900 shares of company stock worth $469,073. 0.03% of the stock is currently owned by corporate insiders.

Verizon Communications Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, November 2nd. Investors of record on Friday, October 9th will be given a dividend of $0.7075 per share. This represents a $2.83 dividend on an annualized basis and a yield of 6.3%. The ex-dividend date of this dividend is Friday, October 9th. Verizon Communications’s dividend payout ratio is 73.70%.

Verizon Communications News Summary

Here are the key news stories impacting Verizon Communications this week:

• Positive Sentiment: Verizon’s upcoming earnings report could provide a near-term catalyst. Analysts expect third-quarter EPS of about $1.27, with investors focused on wireless subscriber additions, churn, service revenue and broadband growth. Strong customer and fiber metrics could support the shares. Verizon Q3 2026 Preview
• Positive Sentiment: Verizon’s valuation and income appeal remain supportive factors. The company recently declared a quarterly dividend of $0.7075, equivalent to $2.83 annually and a reported yield of about 6.5%. Institutional ownership also remains substantial, with several major investors recently increasing their positions.
• Neutral Sentiment: Bernstein maintained a “Hold” rating, reflecting a balanced view ahead of earnings. The consensus analyst stance is also cautious, with most analysts rating the stock Hold despite a consensus price target above the current trading level. Bernstein Remains a Hold on Verizon
• Neutral Sentiment: CEO Kyle Malady sold 1,100 shares for approximately $48,928 under a pre-arranged Rule 10b5-1 trading plan. The sale reduced his direct holdings by only about 1.09%, limiting its significance as an indicator of management’s outlook. SEC insider transaction filing
• Negative Sentiment: SpaceX’s roughly $8 billion nationwide spectrum purchase is raising concerns that additional satellite-wireless competition could pressure pricing and increase Verizon’s future network investment needs. This has weighed on the broader telecom group ahead of Verizon’s results. Verizon Slides as SpaceX Spectrum Deal Clouds Wireless Pricing
• Negative Sentiment: Erste Group Bank trimmed its FY2027 Verizon EPS forecast to $5.25 from $5.26. Although the reduction was modest and remains above the broader $5.03 consensus estimate, it reinforces concerns about limited earnings growth. Verizon analyst estimate update

About Verizon Communications

Verizon Communications Inc is a telecommunications company that provides wireless communications, broadband, and digital connectivity services. Through its consumer business, Verizon offers mobile voice and data plans, smartphones and other connected devices, home internet, fixed wireless access, and fiber-optic broadband services under the Fios brand.

Verizon also serves businesses, government agencies, and other organizations with wireless connectivity, private networks, internet and data services, managed communications, cloud and security solutions, and Internet of Things services.