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Will Consumer Segment Strength Aid Verizon (VZ) Q1 Earnings?
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Verizon Communications Inc. (VZ - Free Report) is scheduled to release first-quarter 2020 results, before the opening bell, on Apr 24. In the first quarter, the company is likely to have recorded higher year-over-year revenues, driven by strength in its wireless business, which forms an integral part of the Consumer segment that accounts for the lion’s share of total revenues.
Factors at Play
During the quarter, Verizon continued to step up the effort for higher 5G deployment across select U.S. cities. The telecom behemoth launched a 5G Ultra Wideband network in Lake Nona, FL, bringing its 5G Ultra-Wideband mobility service to more than 34 U.S. cities with seven 5G-enabled devices and 17 NFL Stadiums. This is expected to be reflected in first-quarter results.
In the quarter, Verizon collaborated with Qualcomm Incorporated, Samsung Electronics and Lenovo to achieve peak speeds of 4.2 gigabits per second on its live 5G network. The tech bellwethers combined eight distinct channels of millimeter waves to reach an unprecedented 4.2 Gbps speed on Verizon’s live 5G network. This is likely to provide a platform to harness the potential of carrier aggregation, which refers to an amalgamation of two or more channel spectrums into a unified data channel, to enhance data throughput capacity. This, in turn, is likely to have translated into incremental revenues for the Consumer segment in the quarter.
The Zacks Consensus Estimate for first-quarter operating revenues in the segment stands at $22,470 million, representing a 7.2% decline on a sequential basis as the coronavirus pandemic has taken a toll on the economy. However, Verizon has been continuously looking to slash costs through employee reduction as it ramps up investment in its next-generation 5G network, which is likely to have improved margins in the quarter. The consensus mark for operating income is pegged at $7,365 million, indicating an improvement from $6,886 million reported in the previous quarter.
Overall Expectations
The Zacks Consensus Estimate for total revenues in the quarter stands at $32,406 million. It generated revenues of $32,128 million in the prior-year quarter. The consensus mark for earnings is currently pegged at $1.22 per share, indicating a rise from $1.20 reported in the year-earlier quarter.
Earnings Whispers
Our proven model does not predict an earnings beat for Verizon this time around. 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 -0.12%. 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 you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter:
InterDigital, Inc. (IDCC - Free Report) is set to release quarterly numbers on May 7. It has an Earnings ESP of +152% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Earnings ESP for Vocera Communications, Inc. is +6.42% and it carries a Zacks Rank of 3. The company is set to report quarterly numbers on Apr 23.
The Earnings ESP for CenturyLink, Inc. is +1.41% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on May 6.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Image: Bigstock
Will Consumer Segment Strength Aid Verizon (VZ) Q1 Earnings?
Verizon Communications Inc. (VZ - Free Report) is scheduled to release first-quarter 2020 results, before the opening bell, on Apr 24. In the first quarter, the company is likely to have recorded higher year-over-year revenues, driven by strength in its wireless business, which forms an integral part of the Consumer segment that accounts for the lion’s share of total revenues.
Factors at Play
During the quarter, Verizon continued to step up the effort for higher 5G deployment across select U.S. cities. The telecom behemoth launched a 5G Ultra Wideband network in Lake Nona, FL, bringing its 5G Ultra-Wideband mobility service to more than 34 U.S. cities with seven 5G-enabled devices and 17 NFL Stadiums. This is expected to be reflected in first-quarter results.
In the quarter, Verizon collaborated with Qualcomm Incorporated, Samsung Electronics and Lenovo to achieve peak speeds of 4.2 gigabits per second on its live 5G network. The tech bellwethers combined eight distinct channels of millimeter waves to reach an unprecedented 4.2 Gbps speed on Verizon’s live 5G network. This is likely to provide a platform to harness the potential of carrier aggregation, which refers to an amalgamation of two or more channel spectrums into a unified data channel, to enhance data throughput capacity. This, in turn, is likely to have translated into incremental revenues for the Consumer segment in the quarter.
The Zacks Consensus Estimate for first-quarter operating revenues in the segment stands at $22,470 million, representing a 7.2% decline on a sequential basis as the coronavirus pandemic has taken a toll on the economy. However, Verizon has been continuously looking to slash costs through employee reduction as it ramps up investment in its next-generation 5G network, which is likely to have improved margins in the quarter. The consensus mark for operating income is pegged at $7,365 million, indicating an improvement from $6,886 million reported in the previous quarter.
Overall Expectations
The Zacks Consensus Estimate for total revenues in the quarter stands at $32,406 million. It generated revenues of $32,128 million in the prior-year quarter. The consensus mark for earnings is currently pegged at $1.22 per share, indicating a rise from $1.20 reported in the year-earlier quarter.
Earnings Whispers
Our proven model does not predict an earnings beat for Verizon this time around. 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 -0.12%. 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 other companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter:
InterDigital, Inc. (IDCC - Free Report) is set to release quarterly numbers on May 7. It has an Earnings ESP of +152% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Earnings ESP for Vocera Communications, Inc. is +6.42% and it carries a Zacks Rank of 3. The company is set to report quarterly numbers on Apr 23.
The Earnings ESP for CenturyLink, Inc. is +1.41% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on May 6.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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