Yahoo Finance Verizon (VZ) Meets Q3 Earnings Estimate, Tops Revenues
Verizon Communications Inc. VZ is the largest telecom operator in the U.S. providing high-end wireless and wireline services to individuals, business enterprises and government agencies.
We remain concerned about Verizon’s operation in the highly competitive and saturated U.S. wireless industry.Spectrum crunch is a major issue in the domestic telecom industry. Moreover, the entry of major cable companies like Comcast Corp and Charter Communications Inc has further intensified competition. Comcast has already completed the nationwide rollout of its wireless services, while Charter is planning to launch wireless services in 2018.
On the flip side, Verizon has restructured its unlimited data plans and has teamed up with Amazon.com to deliver virtual network services at a global scale. Verizon, along with Ericsson and Qualcomm have achieved a download speed of 1.07 Gbps. Verizon’s 5G wireless network trials, plans to deploy fixed wireless version in 2018 and the deal to buy Straight Path Communications complements its 5G wireless expansion strategies. Verizon is preparing to launch an online TV streaming service later this year. We expect that these announcements will aid Verizon to gain subscribers in the to-be-reported quarter.
Additionally, we appreciate Verizon’s efforts to reward shareholders with a quarterly dividend of 59 cents per share, an increase of 1.25 cents or 2.2% from the previous quarter. This is the 11th consecutive year, wherein Verizon's board of directors has approved a quarterly dividend increase.
Buyout of Yahoo aids Verizon’s digital media suite. Meanwhile, Verizon continues to remain on track to fortify itself in the fiber and Internet of Things space through different deals.
Zacks Rank: Verizon currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The company has generated negative average earnings surprise of 0.83% in the previous four quarters.
We have highlighted some of the key stats from this just-revealed announcement below:
Earnings:The company meets third-quarter 2017 earnings. Our consensus called for an adjusted EPS (earnings per share) of 98 cents in line with the company reported adjusted EPS.
Revenue: Verizon reported total revenue of $31,717 million outperforming the Zacks Consensus Estimate of $31,252 million.
Key States to Note: In the third quarter, Verizon gained net 0.603 million retail postpaid connections. Retail postpaid churn was 0.97% compared with 1.04% in the year-ago quarter. At the end of the third quarter of 2017, Verizon had 115.274 million retail connections, up 1.4% year over year.
Verizon Communications Inc. Price and EPS Surprise
Verizon Communications Inc. Price and EPS Surprise | Verizon Communications Inc. Quote
Check back later for our full write up on this Verizon earnings report later!
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