The industry challenges faced by Verizon Communications Inc. (NYSE:VZ) were on display in today’s full-year 2023 results presentation.
The company's total operating revenue for the fourth quarter was reported at $35.1 billion, marking a 0.3% decrease year-over-year, while full-year revenue saw a sharper decline of 2.1%, totaling $134 billion.
Verizon saw a sluggish performance in wireless equipment revenue, which dipped by 2% in the fourth quarter and 10.6% for the full year, indicating a shift in consumer preferences and tougher market competition.
However, serviced-based revenues picked up some of the slack, with wireless service revenues increasing 3.2% year on year.
Full-year net income declined significantly, from $21.7 billion in 2022 to $12.1 billion in the latest year. As a result, diluted earnings per share (EPS) declined 45.7% to $2.75.
Cash flow from operations in 2023 was $37.5 billion, an increase from $37.1 billion in 2022, marking a year-over-year increase of over $300 billion, primarily due to working capital improvements.
"After delivering continuous improvement throughout 2023, we ended the year strong and continue to pursue the right balance of growth and profitability," said Verizon chairman and chief executive Hans Vestberg. "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."
For the year ahead, Verizon expects an adjusted EPS between $4.5 and $4.7, with adjusted earnings growth between 1% and 3%.
The market appeared content with these forecasts, with Verizon shares up 5% in pre-market exchanges.