Verizon Earnings: Modest Customer Growth Hasn’t Slowed Free Cash Flow

Cash flow was the key takeaway in Verizon's third-quarter results. The firm has already generated more cash in 2023 than in 2022 and increased its full-year forecast to more than $18 billion from at least $17 billion. Verizon clearly expects free cash flow to expand in 2024 despite higher interest and tax payments thanks to modest growth and another step down in network investment. We continue to believe the improving competitive balance in the wireless industry will allow the three major U.S. carriers to improve profitability in the years ahead. We are maintaining our $54 fair value estimate and view Verizon shares as very attractive.