Verizon Earnings: Price Increases Drive Solid Wireless Revenue Growth

Verizon’s first-quarter results largely met our expectations. Wireless revenue growth was robust, with recent price increases driving higher sales without spurring significantly higher customer defections. Cash flow was relatively weak, but the first quarter is typically seasonally soft and included a one-off pension contribution. Management also reiterated its 2024 forecast, which calls for free cash flow in the same range as 2023. We expect Verizon to make steady progress growing the business and repaying debt this year, and our fair value estimate remains $54 per share.