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Can Modest Revenue Growth Benefit Verizon (VZ) Q3 Earnings?
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Verizon Communications Inc. (VZ - Free Report) is scheduled to report third-quarter 2022 results before the opening bell on Oct 21. In the last reported quarter, the telecom giant missed the Zacks Consensus Estimate by 3 cents. The company is expected to have recorded higher aggregate revenues year over year, buoyed by the positive momentum in its core wireless business.
Factors at Play
During the third quarter, Verizon continued to deploy 100 MHz of C-Band spectrum to further expand its 5G coverage. The company is witnessing significant 5G adoption and fixed wireless broadband momentum while increasing demand for premium mobility and broadband offerings instill optimism. Verizon deployed 5G Ultra Wideband technology in Pittsburgh to extend its 5G footprint in the region. It also inked an agreement with American Tower Corporation to gain secured access to its extensive portfolio of communications sites in the United States to deploy its nationwide 5G network. This is likely to get reflected in the upcoming quarterly results.
Verizon secured more than $400 million Enterprise Infrastructure Solutions task order from the Federal Bureau of Investigation (“FBI”) to help the agency meet increasing demands for data bandwidth globally. This will enable the FBI to enjoy faster network speed with low latency, seamless connectivity, security and control. These developments are likely to have had a positive impact on Verizon’s performance.
During the quarter, Verizon extended its collaboration with Visionable to accelerate the evolution of healthcare using its private 5G and AI-driven secure networking. According to the terms of the collaboration, the firms will work in unison on a range of connected healthcare solutions, leveraging Visionable’s patented technology and Verizon’s 5G Ultra Wideband and 5G Edge network. This network will enable a higher data transfer speed, reduce lag time and help swiftly connect multiple devices simultaneously. These initiatives are likely to have translated into incremental revenues in the quarter.
In the third quarter, Verizon inked an agreement with Virginia International Terminals, LLC, to build a private 5G Ultra Wideband network at one of The Port Of Virginia’s main container terminals. This will enable the firm to explore the use of autonomous over-the-road trucks for accessing the terminal to drop off and pick up shipping containers. However, adverse foreign currency translations and high operating costs for 5G deployments are likely to have led to soft margins in the quarter. The infrastructure investments are expected to have weighed on the margins.
For the September quarter, the Zacks Consensus Estimate for revenues is pegged at $33,782 million. Our revenue projection for the quarter is pegged at $33,716 million. It reported revenues of $32,915 million in the year-ago quarter. The consensus estimate for adjusted earnings per share stands at $1.28, which suggests a decline from the year-ago tally of $1.41. Our earnings projection for the quarter is pegged at $1.30 per share.
Earnings Whispers
Our proven model predicts an earnings beat for Verizon for the third quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is perfectly the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +0.73%, with the former pegged at $1.29 and the latter at $1.28. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Verizon Communications Inc. Price and EPS Surprise
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
The Earnings ESP for T-Mobile US, Inc. (TMUS - Free Report) is +11.60% and it carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Oct 27.
The Earnings ESP for Apple Inc. (AAPL - Free Report) is +0.86% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Oct 27.
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Can Modest Revenue Growth Benefit Verizon (VZ) Q3 Earnings?
Verizon Communications Inc. (VZ - Free Report) is scheduled to report third-quarter 2022 results before the opening bell on Oct 21. In the last reported quarter, the telecom giant missed the Zacks Consensus Estimate by 3 cents. The company is expected to have recorded higher aggregate revenues year over year, buoyed by the positive momentum in its core wireless business.
Factors at Play
During the third quarter, Verizon continued to deploy 100 MHz of C-Band spectrum to further expand its 5G coverage. The company is witnessing significant 5G adoption and fixed wireless broadband momentum while increasing demand for premium mobility and broadband offerings instill optimism. Verizon deployed 5G Ultra Wideband technology in Pittsburgh to extend its 5G footprint in the region. It also inked an agreement with American Tower Corporation to gain secured access to its extensive portfolio of communications sites in the United States to deploy its nationwide 5G network. This is likely to get reflected in the upcoming quarterly results.
Verizon secured more than $400 million Enterprise Infrastructure Solutions task order from the Federal Bureau of Investigation (“FBI”) to help the agency meet increasing demands for data bandwidth globally. This will enable the FBI to enjoy faster network speed with low latency, seamless connectivity, security and control. These developments are likely to have had a positive impact on Verizon’s performance.
During the quarter, Verizon extended its collaboration with Visionable to accelerate the evolution of healthcare using its private 5G and AI-driven secure networking. According to the terms of the collaboration, the firms will work in unison on a range of connected healthcare solutions, leveraging Visionable’s patented technology and Verizon’s 5G Ultra Wideband and 5G Edge network. This network will enable a higher data transfer speed, reduce lag time and help swiftly connect multiple devices simultaneously. These initiatives are likely to have translated into incremental revenues in the quarter.
In the third quarter, Verizon inked an agreement with Virginia International Terminals, LLC, to build a private 5G Ultra Wideband network at one of The Port Of Virginia’s main container terminals. This will enable the firm to explore the use of autonomous over-the-road trucks for accessing the terminal to drop off and pick up shipping containers. However, adverse foreign currency translations and high operating costs for 5G deployments are likely to have led to soft margins in the quarter. The infrastructure investments are expected to have weighed on the margins.
For the September quarter, the Zacks Consensus Estimate for revenues is pegged at $33,782 million. Our revenue projection for the quarter is pegged at $33,716 million. It reported revenues of $32,915 million in the year-ago quarter. The consensus estimate for adjusted earnings per share stands at $1.28, which suggests a decline from the year-ago tally of $1.41. Our earnings projection for the quarter is pegged at $1.30 per share.
Earnings Whispers
Our proven model predicts an earnings beat for Verizon for the third quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is perfectly the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +0.73%, with the former pegged at $1.29 and the latter at $1.28. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Verizon Communications Inc. Price and EPS Surprise
Verizon Communications Inc. price-eps-surprise | Verizon Communications Inc. Quote
Zacks Rank: Verizon has a Zacks Rank #3.
Other Stocks to Consider
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
AT&T Inc. (T - Free Report) is set to release quarterly numbers on Oct 20. It has an Earnings ESP of +2.70% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Earnings ESP for T-Mobile US, Inc. (TMUS - Free Report) is +11.60% and it carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Oct 27.
The Earnings ESP for Apple Inc. (AAPL - Free Report) is +0.86% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Oct 27.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.