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 Wireless Strength Drive Verizon's (VZ) Q3 Earnings?
Read MoreHide Full Article
Verizon Communications Inc. (VZ - Free Report) is scheduled to release third-quarter 2019 results before the opening bell on Oct 25. In the last reported quarter, adjusted earnings beat the Zacks Consensus Estimate by 3 cents.
Verizon is likely to have recorded higher year-over-year revenues from the Wireless segment, which accounts for lion’s share of total revenues.
Factors at Play
During the third quarter, the telecom behemoth launched 5G Ultra Wideband network in select locations of Atlanta, Detroit, Indianapolis, Washington DC, Phoenix, St. Paul, New York City, Panama City and Boise to bring the tally of mobility service cities to 13. Also, Verizon launched its fifth 5G-enabled device — Inseego Corp.’s MiFi M1000 — that combines large bandwidth and fast download speeds for data-extensive applications. These are expected to be reflected in the third-quarter results.
The company has aggressively expanded its fiber optics networks to support 4G LTE and upcoming 5G wireless standards as well as wireline connections, which is likely to have translated into healthy segment margin for the quarter.
Buoyed by such tailwinds, the Zacks Consensus Estimate for the Wireless segment’s operating revenues for the to-be-reported quarter is currently pegged at $23,437 million, up 2% from the year-ago reported figure of $22,973 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 $32,715 million. It generated revenues of $32,607 million in the prior-year quarter. The Zacks Consensus Estimate for earnings is currently pegged at $1.24 per share, up from $1.22 reported in the year-earlier quarter.
Key Developments in Q3
During the third quarter, Verizon decided to wind up the operations of news channel Fios1 (Fiber Optic Service) News, which is one of the two hyperlocal cable-news channels serving New York City’s metro area. The company also announced plans to divest the social media blogging site — Tumblr — for an undisclosed amount, to San Francisco-based web developer firm Automattic Inc. in order to focus on core assets that centered on premium original content. Moreover, the company offered a voluntary severance package to about 44,000 employees to trim its workforce by about 30%. The moves are aimed to reduce operating costs by $10 billion by 2021.
Earnings Whispers
Our proven model predicts an earnings beat for Verizon in 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 +0.40%. 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 other 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:
The Earnings ESP for T-Mobile US, Inc. (TMUS - Free Report) is +0.55% and it carries a Zacks Rank of 2. The company is set to report quarterly numbers on Oct 28.
The Earnings ESP for Sprint Corporation (S - Free Report) is +27.78% and it carries a Zacks Rank of 3. The company is likely to report quarterly numbers on Oct 30.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers “Most Likely for Early Price Pops.”
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.50% per year. So be sure to give these hand-picked 7 your immediate attention.
Image: Bigstock
Can Wireless Strength Drive Verizon's (VZ) Q3 Earnings?
Verizon Communications Inc. (VZ - Free Report) is scheduled to release third-quarter 2019 results before the opening bell on Oct 25. In the last reported quarter, adjusted earnings beat the Zacks Consensus Estimate by 3 cents.
Verizon is likely to have recorded higher year-over-year revenues from the Wireless segment, which accounts for lion’s share of total revenues.
Factors at Play
During the third quarter, the telecom behemoth launched 5G Ultra Wideband network in select locations of Atlanta, Detroit, Indianapolis, Washington DC, Phoenix, St. Paul, New York City, Panama City and Boise to bring the tally of mobility service cities to 13. Also, Verizon launched its fifth 5G-enabled device — Inseego Corp.’s MiFi M1000 — that combines large bandwidth and fast download speeds for data-extensive applications. These are expected to be reflected in the third-quarter results.
The company has aggressively expanded its fiber optics networks to support 4G LTE and upcoming 5G wireless standards as well as wireline connections, which is likely to have translated into healthy segment margin for the quarter.
Buoyed by such tailwinds, the Zacks Consensus Estimate for the Wireless segment’s operating revenues for the to-be-reported quarter is currently pegged at $23,437 million, up 2% from the year-ago reported figure of $22,973 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 $32,715 million. It generated revenues of $32,607 million in the prior-year quarter. The Zacks Consensus Estimate for earnings is currently pegged at $1.24 per share, up from $1.22 reported in the year-earlier quarter.
Key Developments in Q3
During the third quarter, Verizon decided to wind up the operations of news channel Fios1 (Fiber Optic Service) News, which is one of the two hyperlocal cable-news channels serving New York City’s metro area. The company also announced plans to divest the social media blogging site — Tumblr — for an undisclosed amount, to San Francisco-based web developer firm Automattic Inc. in order to focus on core assets that centered on premium original content. Moreover, the company offered a voluntary severance package to about 44,000 employees to trim its workforce by about 30%. The moves are aimed to reduce operating costs by $10 billion by 2021.
Earnings Whispers
Our proven model predicts an earnings beat for Verizon in 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 +0.40%. 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 #2.
Other Stocks to Consider
Here are some other 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 (T - Free Report) is set to release quarterly numbers on Oct 28. It has an Earnings ESP of +0.50% 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 +0.55% and it carries a Zacks Rank of 2. The company is set to report quarterly numbers on Oct 28.
The Earnings ESP for Sprint Corporation (S - Free Report) is +27.78% and it carries a Zacks Rank of 3. The company is likely to report quarterly numbers on Oct 30.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers “Most Likely for Early Price Pops.”
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.50% per year. So be sure to give these hand-picked 7 your immediate attention.
See them now >>