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Verizon (VZ) Meets Q2 Earnings Estimate, Tops Revenues

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

Spectrum crunch is a major issue in the U.S. telecom industry and Verizon continues to operate in a saturated and competitive wireless market. Expenses related to Verizon’s promotional plans and lucrative discounts to lure more customers might impact the wireless segment’s EBITDA and EBITDA service margins in the to-be-reported quarter.

Nevertheless, the acquisition of the core assets of Yahoo will boost Verizon’s digital media suite. The deal will create a major player in the mobile media and advertising space. Verizon’s unlimited data plans have already heated up the wireless industry. Moreover, the company’s strong foothold in the Internet of Things (IoT) and fiber space bode well.

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 second-quarter 2017 earnings. Our consensus called for an adjusted EPS (earnings per share) of 96 cents in line with the company reported adjusted EPS.

Revenue:   Verizon reported total revenue of $30,548 million outperforming the Zacks Consensus Estimate of $29,907 million.

Key States to Note:  In the second quarter, Verizon gained a net 0.614 million retail postpaid connections. Retail postpaid churn was 0.94%, flat year over year. At the end of the second quarter of 2017, Verizon had 114.536 million retail connections, up 1.2% year over year.

Stock Price:  At the time of writing, the stock price of Verizon was up nearly 1.31% in the pre-market trade on NYSE. Clearly the initial reaction to the release is pogative. The company surpassed the Zacks Consensus Estimate for the top and meet for the bottom line. Moreover, the company gained significant amount of postpaid wireless subscribers in the reported quarter.     

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

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