Verizon (VZ) Set To Ring-Up Q3 Profits
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Shares of Verizon Wireless (NYSE: VZ) are trading slightly down today, ahead of their earnings release before the market opens, October 26, 2009. The shares are currently down $0.17, or about 0.5%, to $28.85. Volume on the day is about average as well.
THE NUMBERS:
For Q309, the Street is looking for Verizon to report an EPS of $0.59 and revenues of $27.17 billion. Verizon posted an EPS of $0.62 and revenues of 26.90 billion for Q209. A year ago, for Q308, Verizon check-in with $0.66 EPS and $24.80 billion revs.
PERFORMANCE:
Since the last quarter, Verizon has been down about 6.5%. YTD, Verizon is down about 13%. The Communications Services sector has been up about 5.5% YTD.
WALL STREET RATINGS:
Bloomberg reports that 18 analysts have a Buy rating on Verizon, 15 have a Hold, and 1 has a Sell rating. The average price from the analysts is $33.78, with $40 the maximum and $30 the minimum.
ANALYST VIEW:
Goldman Sachs recently commented on Verizon: "Postpaid ARPU [average revenue per user] strength reflects greater than expected stability at the higher end of the wireless market, which has positive ramifications for VZ."
Piper Jaffray is a little more skeptical, saying, "Our preference for T [AT&T] over VZ has been predicated on better EPS growth into 2010. In order for us to get more positive on Verizon, we would want to see improving share of wireless adds, stable wireless margins, and improving wireline margins."
WRAP-UP:
As analysts have observed, Verizon may have had a rough quarter on the back of lower corporate sales. The recession has forced many companies to downsize their workforce and spending, a big chunk of Verizon's business. That, and AT&T (NYSE: T) had exclusive rights on one of the hottest Smartphones of the year, Apple's (NASDAQ: AAPL) iPhone.
Verizon is scheduled to present its earnings report just before 7:30 AM EDT.
Stay tuned to StreetInsider.com's
THE NUMBERS:
For Q309, the Street is looking for Verizon to report an EPS of $0.59 and revenues of $27.17 billion. Verizon posted an EPS of $0.62 and revenues of 26.90 billion for Q209. A year ago, for Q308, Verizon check-in with $0.66 EPS and $24.80 billion revs.
PERFORMANCE:
Since the last quarter, Verizon has been down about 6.5%. YTD, Verizon is down about 13%. The Communications Services sector has been up about 5.5% YTD.
WALL STREET RATINGS:
Bloomberg reports that 18 analysts have a Buy rating on Verizon, 15 have a Hold, and 1 has a Sell rating. The average price from the analysts is $33.78, with $40 the maximum and $30 the minimum.
ANALYST VIEW:
Goldman Sachs recently commented on Verizon: "Postpaid ARPU [average revenue per user] strength reflects greater than expected stability at the higher end of the wireless market, which has positive ramifications for VZ."
Piper Jaffray is a little more skeptical, saying, "Our preference for T [AT&T] over VZ has been predicated on better EPS growth into 2010. In order for us to get more positive on Verizon, we would want to see improving share of wireless adds, stable wireless margins, and improving wireline margins."
WRAP-UP:
As analysts have observed, Verizon may have had a rough quarter on the back of lower corporate sales. The recession has forced many companies to downsize their workforce and spending, a big chunk of Verizon's business. That, and AT&T (NYSE: T) had exclusive rights on one of the hottest Smartphones of the year, Apple's (NASDAQ: AAPL) iPhone.
Verizon is scheduled to present its earnings report just before 7:30 AM EDT.
Stay tuned to StreetInsider.com's
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