Back to top

Image: Bigstock

Verizon (VZ) Beats Both Q2 Earnings & Revenue Estimates

Read MoreHide Full Article

Verizon Communications Inc. (VZ - Free Report) is the largest telecom operator in the United States providing high-end wireless and wireline services to individuals, business enterprises and government agencies.

VZ is continuously investing in wireless and wireline fiber-optic networks as 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. VZ 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.

However, the company’s wireline division is struggling with persistent losses in access lines owing to competitive pressure from voice-over-Internet protocol service providers and aggressive triple-play (voice, data, video) offerings by cable companies. As the extent of competition is increasing over time, investors have been eagerly awaiting for the company’s latest earnings report. In the last four trailing quarters, VZ has reported a positive average earnings surprise of 0.8%, missing estimate only once.

Currently, VZ has a Zacks Rank #3 (Hold), but that could definitely change following second-quarter 2018 earnings report which was just released. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: VZ beats on earnings. VZ reported adjusted earnings of $1.20 per share, which exceeded the Zacks Consensus Estimate of $1.14.       

Revenues: Quarterly GAAP revenues beat estimates. VZ recorded GAAP revenues of $32,203 million, well above the Zacks Consensus Estimate of $31,718 million.  
 
Key Stats to Note:  For full year 2018, VZ reiterated its earlier guidance and continues to expect both GAAP revenues and adjusted earnings per share to increase by low-to-mid single-digit percentage rates driven by expected savings from tax reform.

Stock Price: Shares prices were up in pre-market trading at the time of writing probably due to a healthy earnings beat.

Check back our full write up on this VZ earnings report later!

The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Verizon Communications Inc. (VZ) - free report >>

Published in