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Will Higher Business Revenues Aid Verizon (VZ) Q2 Earnings?
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Verizon Communications Inc. (VZ - Free Report) is scheduled to report second-quarter 2023 results before the opening bell on Jul 25. In the quarter, the Business segment is likely to have recorded year-over-year higher revenues driven by innovative service offerings and lucrative wireless plans.
Factors at Play
The Business segment includes the wireless and wireline operations of Wholesale, Public Sector and Other, Small and Medium Business, and Global Enterprise.
During the second quarter, Verizon aimed to revolutionize the way business enterprises manage their fixed wireless connections with a range of new features and native security offerings. It introduced a cloud-based router management dashboard, coupled with advanced security features, to empower businesses of all sizes to address their performance, security and visibility needs from a centralized location.
Verizon is offering these solutions as simple-to-add enhancements to its fixed-wireless plans, eliminating the need for special equipment or in-house IT support. This means businesses can take advantage of the new features without any installation hassles, enabling them to focus on their core operations. Key among the offerings is the Verizon Business Internet Portal, accessible via verizon.com. The portal allows businesses to monitor and self-manage their entire portfolio of fixed-wireless connections, irrespective of the router manufacturer. It provides critical network-management capabilities such as performance monitoring, diagnostics, device management and bulk configuration management for enterprises with multiple lines. These initiatives are likely to have translated into incremental revenues in the quarter.
During the quarter, Verizon announced the launch of a new Verizon Connect Equipment Asset Tracker (EAT) to support organizations with efficient resource utilization during field operations. Verizon Connect, an industry-leading fleet management technology provider, also unveiled new updates for mobile workforce management platforms that will enable centralized asset tracking and monitoring in accordance with user-specific requirements.
Our estimate for revenues from the Business segment is pegged at $7,657 million, indicating a marginal increase from $7,626 million reported in the year-ago quarter. Our estimate for operating income from the segment stands at $664 million, suggesting a fall from $675 million.
However, adverse foreign currency translations and high operating costs are likely to have led to soft margins in the second quarter. Challenging macroeconomic conditions and high inflationary pressures are expected to have affected the quarterly performance.
Overall Expectations
The Zacks Consensus Estimate for total revenues is pegged at $33,435 million. It reported revenues of $33,789 million in the year-ago quarter. The consensus estimate for adjusted earnings per share stands at $1.17, which suggests a decline from the year-ago tally of $1.31.
Earnings Whispers
Our proven model does not predict an earnings beat for Verizon for the second 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 not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -0.86%, with the former pegged at $1.16 and the latter at $1.17. 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 +3.94% and it carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Jul 27.
The Earnings ESP for Meta Platforms, Inc. (META - Free Report) is +6.56% and it carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Jul 26.
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Will Higher Business Revenues Aid Verizon (VZ) Q2 Earnings?
Verizon Communications Inc. (VZ - Free Report) is scheduled to report second-quarter 2023 results before the opening bell on Jul 25. In the quarter, the Business segment is likely to have recorded year-over-year higher revenues driven by innovative service offerings and lucrative wireless plans.
Factors at Play
The Business segment includes the wireless and wireline operations of Wholesale, Public Sector and Other, Small and Medium Business, and Global Enterprise.
During the second quarter, Verizon aimed to revolutionize the way business enterprises manage their fixed wireless connections with a range of new features and native security offerings. It introduced a cloud-based router management dashboard, coupled with advanced security features, to empower businesses of all sizes to address their performance, security and visibility needs from a centralized location.
Verizon is offering these solutions as simple-to-add enhancements to its fixed-wireless plans, eliminating the need for special equipment or in-house IT support. This means businesses can take advantage of the new features without any installation hassles, enabling them to focus on their core operations. Key among the offerings is the Verizon Business Internet Portal, accessible via verizon.com. The portal allows businesses to monitor and self-manage their entire portfolio of fixed-wireless connections, irrespective of the router manufacturer. It provides critical network-management capabilities such as performance monitoring, diagnostics, device management and bulk configuration management for enterprises with multiple lines. These initiatives are likely to have translated into incremental revenues in the quarter.
During the quarter, Verizon announced the launch of a new Verizon Connect Equipment Asset Tracker (EAT) to support organizations with efficient resource utilization during field operations. Verizon Connect, an industry-leading fleet management technology provider, also unveiled new updates for mobile workforce management platforms that will enable centralized asset tracking and monitoring in accordance with user-specific requirements.
Our estimate for revenues from the Business segment is pegged at $7,657 million, indicating a marginal increase from $7,626 million reported in the year-ago quarter. Our estimate for operating income from the segment stands at $664 million, suggesting a fall from $675 million.
However, adverse foreign currency translations and high operating costs are likely to have led to soft margins in the second quarter. Challenging macroeconomic conditions and high inflationary pressures are expected to have affected the quarterly performance.
Overall Expectations
The Zacks Consensus Estimate for total revenues is pegged at $33,435 million. It reported revenues of $33,789 million in the year-ago quarter. The consensus estimate for adjusted earnings per share stands at $1.17, which suggests a decline from the year-ago tally of $1.31.
Earnings Whispers
Our proven model does not predict an earnings beat for Verizon for the second 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 not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -0.86%, with the former pegged at $1.16 and the latter at $1.17. 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.
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:
Intel Corporation (INTC - Free Report) is set to release quarterly numbers on Jul 27. It has an Earnings ESP of +19.64% and a Zacks Rank #2. 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 +3.94% and it carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Jul 27.
The Earnings ESP for Meta Platforms, Inc. (META - Free Report) is +6.56% and it carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Jul 26.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.