Monday 25 January 2016

Verizon Communications Earnings Per Share (EPS) Expectations


Verizon Communications is publishing its Q4 financial statements and analysts are keen to find out whether the company has met their expectations.

On Thursday, January 21, 2016, Verizon Communication is set to put forward the company’s fourth-quarter financial statements. Analysts have forwarded different speculations about the organization’s revenue and earnings per share.

According to Thomas Reuters, the top telecommunication company is expected to have $0.88 earnings per share – a 23% increase as compared to the same quarter last year (2014:$0.77). The analysts expect the business to earn revenue of $34.06 billion – around 3% more than the same quarter of last year’s (2014:$33.19 billion) while the full-year revenue of the business is expected to be $131.5 billion – a 3% increase as compared to last year’s (2014:$127.1 billion).

Analysts are also confident that the New York based company has potential to perform better in 2016. Verizon stock news gives the following picture: JPMorgan Chase & Co. has suggested an Outperform rating while lowering down the price target of its stock by almost 4% from $57 to $55. Cowen evaluated the stock at Market Perform. BTIG Research has rated the stock from “Buy” to “Neutral” while Citigroup has given “Hold” rating.

Although, the telecomm giant is expected to declare favorable financial position of the Verizon, the organization’s performance is susceptible to high competition. The Kansas based wireless accessories provide, Sprint Corp. had shaken the industry when it announced a half-price offer to its customers. The analysts are intrigued to find out whether Verizon maintained its strong subscriber growth. Analysts at Wells Fargo are confident that the company will be able to maintain their strong 1.5 million postpaid subscribers.

Eyes are all set on to see the plans of Verizon wireless business, which was earlier reported to have said that it would take part in the government’s auction of wireless airwaves. Further, FirstNet, a nationwide public safety network, requires a carrier partner. Investors are waiting to find out about company’s official view regarding the proposed plans.

People are also expecting to learn company’s stance regarding Yahoo’s anticipated sale. Initially, Verizon showed the interest in the deal but a concrete statement on the potential deal has not yet been made by the entity. Analysts are ambitious and will find out as soon as the Thursday market opens. 

The stock market on Wednesday displayed the Verizon stock at $44.45 – a 0.94% decrease. The analysts unanimously proposed a price target of $50.58 and a 52-week trading range of $38.06 to $50.86. Favorable conditions are anticipated ahead for the business this year. 

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