We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Can Higher Wireless Revenues Aid Verizon's (VZ) Q2 Earnings?
Read MoreHide Full Article
Verizon Communications Inc. (VZ - Free Report) is scheduled to release second-quarter 2018 results before the opening bell on Jul 24. The company is likely to record higher revenues from the Wireless segment, which accounts for the lion’s share of total revenues, on a year-over-year basis.
Whether this will benefit the bottom line of the company remains to be seen.
Top-Line Expansion
Verizon offers one of the most efficient wireless networks in the United States. The telecom behemoth is continuously investing in wireless and wireline fiber-optic networks. It plans to launch next-generation 5G wireless residential broadband services in three to five U.S. markets in 2018. The first commercial launch is scheduled in Sacramento, CA, in the second half of 2018.
During the first application of 5G wireless network, Verizon will be using millimeter-wave spectrum (radio signals) instead of copper or fiber cables to provide customers unmatched wireless speeds for Internet access. Verizon has started conducting field trials for its upcoming 5G wireless network with partners. The company is looking at mobile hotspot and home-based fixed wireless for initial deployment of the next-generation 5G wireless networks in the country in 2018. A full phased 5G wireless network is likely to be offered in 2020.
At the same time, Verizon is systematically diversifying itself as a major player in the digital content and online advertising space. During second-quarter 2018, Oath — its umbrella firm for digital content subdivisions — introduced new opportunities for brands to engage with consumers through extended reality (XR) ad experiences. XR is a combination of real and virtual world and human-machine interaction. XR includes Virtual Reality, Augmented Reality and newly-developed immersive technologies to connect and engage customers at more meaningful levels.
Oath’s latest premium ad innovation for consumers entails combining the art of brand building and the science of data, new 3D advertisement formats and first-in-market programmatic VR ads. With these ad formats, Oath is using brand advertising intelligence to help marketers build emotional connections with their customers through interactive experience, allowing them to explore objects and make informed decisions.
Buoyed by such tailwinds, the Zacks Consensus Estimate for operating revenues in the Wireless segment in the to-be-reported quarter is currently pegged at $21,774 million, which is relatively higher than the year-ago reported figure of $21,282 million. The higher revenue expectations can be attributed to an uptick in demand and an upgrade to state-of-the-art infrastructure.
Total revenues for the company are expected to be $31,650 million compared with $30,548 million in the prior-year quarter.
Other Key Factors
In an effort to expand its customer base, Verizon is spending heavily on promotion and is also offering lucrative discounts. These strategies are likely to impact the company’s EBITDA and EBITDA service margins in the quarter. Revenues from the Wireline segment are likely to be $7,543 million, down from $7,802 million owing to competitive pressure from voice-over-Internet protocol service providers and aggressive triple-play (voice, data, video) offerings by cable companies. In order to make Wireline profitable, Verizon is making significant investments and is streamlining its cost structure. These are likely to weigh on the company’s revenues and margins.
Our proven model conclusively shows that Verizon is likely to beat earnings this quarter as it possesses the key components. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is perfectly the case here as you will see below:
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is +0.20% with the former pegged at $1.15 and the latter at $1.14. 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
Zacks Rank: Verizon has a Zacks Rank #3. This increases the predictive power of ESP and makes us reasonably confident of an earnings beat.
Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing a negative estimate revisions momentum.
Stocks to Consider
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Windstream Holdings, Inc. , with an Earnings ESP of +12.15% and a Zacks Rank #2, is slated to report results on Aug 9.
Cisco Systems, Inc. (CSCO - Free Report) has an Earnings ESP of +0.60% and a Zacks Rank #2. The company is likely to release earnings on Aug 15.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
Can Higher Wireless Revenues Aid Verizon's (VZ) Q2 Earnings?
Verizon Communications Inc. (VZ - Free Report) is scheduled to release second-quarter 2018 results before the opening bell on Jul 24. The company is likely to record higher revenues from the Wireless segment, which accounts for the lion’s share of total revenues, on a year-over-year basis.
Whether this will benefit the bottom line of the company remains to be seen.
Top-Line Expansion
Verizon offers one of the most efficient wireless networks in the United States. The telecom behemoth is continuously investing in wireless and wireline fiber-optic networks. It plans to launch next-generation 5G wireless residential broadband services in three to five U.S. markets in 2018. The first commercial launch is scheduled in Sacramento, CA, in the second half of 2018.
During the first application of 5G wireless network, Verizon will be using millimeter-wave spectrum (radio signals) instead of copper or fiber cables to provide customers unmatched wireless speeds for Internet access. Verizon has started conducting field trials for its upcoming 5G wireless network with partners. The company is looking at mobile hotspot and home-based fixed wireless for initial deployment of the next-generation 5G wireless networks in the country in 2018. A full phased 5G wireless network is likely to be offered in 2020.
At the same time, Verizon is systematically diversifying itself as a major player in the digital content and online advertising space. During second-quarter 2018, Oath — its umbrella firm for digital content subdivisions — introduced new opportunities for brands to engage with consumers through extended reality (XR) ad experiences. XR is a combination of real and virtual world and human-machine interaction. XR includes Virtual Reality, Augmented Reality and newly-developed immersive technologies to connect and engage customers at more meaningful levels.
Oath’s latest premium ad innovation for consumers entails combining the art of brand building and the science of data, new 3D advertisement formats and first-in-market programmatic VR ads. With these ad formats, Oath is using brand advertising intelligence to help marketers build emotional connections with their customers through interactive experience, allowing them to explore objects and make informed decisions.
Buoyed by such tailwinds, the Zacks Consensus Estimate for operating revenues in the Wireless segment in the to-be-reported quarter is currently pegged at $21,774 million, which is relatively higher than the year-ago reported figure of $21,282 million. The higher revenue expectations can be attributed to an uptick in demand and an upgrade to state-of-the-art infrastructure.
Total revenues for the company are expected to be $31,650 million compared with $30,548 million in the prior-year quarter.
Other Key Factors
In an effort to expand its customer base, Verizon is spending heavily on promotion and is also offering lucrative discounts. These strategies are likely to impact the company’s EBITDA and EBITDA service margins in the quarter. Revenues from the Wireline segment are likely to be $7,543 million, down from $7,802 million owing to competitive pressure from voice-over-Internet protocol service providers and aggressive triple-play (voice, data, video) offerings by cable companies. In order to make Wireline profitable, Verizon is making significant investments and is streamlining its cost structure. These are likely to weigh on the company’s revenues and margins.
Our proven model conclusively shows that Verizon is likely to beat earnings this quarter as it possesses the key components. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is perfectly the case here as you will see below:
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is +0.20% with the former pegged at $1.15 and the latter at $1.14. 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 and EPS Surprise | Verizon Communications Inc. Quote
Zacks Rank: Verizon has a Zacks Rank #3. This increases the predictive power of ESP and makes us reasonably confident of an earnings beat.
Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing a negative estimate revisions momentum.
Stocks to Consider
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter:
AT&T Inc. (T - Free Report) is slated to release quarterly numbers on Jul 24. It has an Earnings ESP of +0.77% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Windstream Holdings, Inc. , with an Earnings ESP of +12.15% and a Zacks Rank #2, is slated to report results on Aug 9.
Cisco Systems, Inc. (CSCO - Free Report) has an Earnings ESP of +0.60% and a Zacks Rank #2. The company is likely to release earnings on Aug 15.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>