Investors Hoping Verizon (VZ) "Never Stopped Working for Them" in Q3 (AAPL, Q, T, VOD)
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Price: $49.19 -0.34%
Financial Fact:
Weighted-average shares outstanding (in millions): 4.09B
Today's EPS Names:
EDXC, BICX, FBPI, More
Financial Fact:
Weighted-average shares outstanding (in millions): 4.09B
Today's EPS Names:
EDXC, BICX, FBPI, More
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Verizon Communications, Inc. (NYSE: VZ) is trading lower today, ahead of the company's third quarter earnings release, expected out before the market opens tomorrow, October 22. Shares are down 0.83% in afternoon trading.
The company is expected to report an EPS of $0.54 on revs of $26.34 billion. The numbers point to an 8.5% decrease in EPS and 3.1% decrease in revs from the same period last year, according to analysts. Verizon posted an EPS of $0.58 on revs of $27.10 billion last quarter.
Shares of the company gained with the market through the quarter, up 18.4% to $32.12 at the end of September. The stock is 3.4% higher since the start of the year, and 0.7% up since the end of the quarter.
Verizon stock is trading for a forward EPS of 14.2x FY11 EPS estimates, compared to 11.4x for AT&T (NYSE:T), 16.6x for Qwest Communications (NYSE: Q), and 10.1x for Vodafone (NYSE: VOD) (its partner-in-crime in Verizon Wireless).
Data from Bloomberg has 13 analysts with a Buy rating, 19 with a Hold, and one recommending to Sell. The analyst price target average is $33 with a high of $39 and a low of $25.
Summary
Verizon recently traded at a 52-week high of $33.68, and is closing in on all-time highs just north of $35, and is going for a multiple comparable to peers. Actually, the stock hasn't seen price levels this high since early into 2008 and the end of 2007. Looking at a YTD chart, with daily intervals, a nice support level may be forming around the $32 price level, making an weak earnings report just the catalyst that might be needed to break through the level. Again, looking at the YTD chart, an ascending triangle is vaguely forming since the middle of July, and shares look to have recently broken through the channel.
Deutsche Bank sees Verizon reporting an in-line adjusted EPS of $0.54 on revs of $26.2 billion, with an EBITDA margin of 45.8%. They note that the numbers come from improving inventory and Alletel merger synergies, which will offset elevated handset subsidies and LTE prep costs. DB thinks that a strong DROID X launch in July, and two-for-one deals on handsets, though in response to Apple's (Nasdaq: AAPL) iPhone 4 launch, will increase their smartphone penetration to 25%. DB sees 1.8% growth in post-paid revs Y/Y, 6.2% growth in service revs ,and 1.05% in post-paid churn. Total wireless adds are expected to be 925,000, with 575K post-paid. ARPU for post-paid subs should come in at $53.52.
Verizon Communications Inc. is expected to release their Q310 earnings on Friday, October 22, 2010, at approximately 8:00am EDT. Stay tuned to StreetInsider.com's EPS Central section to see our analysis of the highly-anticipated quarterly results within seconds of their release.
The company is expected to report an EPS of $0.54 on revs of $26.34 billion. The numbers point to an 8.5% decrease in EPS and 3.1% decrease in revs from the same period last year, according to analysts. Verizon posted an EPS of $0.58 on revs of $27.10 billion last quarter.
Shares of the company gained with the market through the quarter, up 18.4% to $32.12 at the end of September. The stock is 3.4% higher since the start of the year, and 0.7% up since the end of the quarter.
Verizon stock is trading for a forward EPS of 14.2x FY11 EPS estimates, compared to 11.4x for AT&T (NYSE:T), 16.6x for Qwest Communications (NYSE: Q), and 10.1x for Vodafone (NYSE: VOD) (its partner-in-crime in Verizon Wireless).
Data from Bloomberg has 13 analysts with a Buy rating, 19 with a Hold, and one recommending to Sell. The analyst price target average is $33 with a high of $39 and a low of $25.
Summary
Verizon recently traded at a 52-week high of $33.68, and is closing in on all-time highs just north of $35, and is going for a multiple comparable to peers. Actually, the stock hasn't seen price levels this high since early into 2008 and the end of 2007. Looking at a YTD chart, with daily intervals, a nice support level may be forming around the $32 price level, making an weak earnings report just the catalyst that might be needed to break through the level. Again, looking at the YTD chart, an ascending triangle is vaguely forming since the middle of July, and shares look to have recently broken through the channel.
Deutsche Bank sees Verizon reporting an in-line adjusted EPS of $0.54 on revs of $26.2 billion, with an EBITDA margin of 45.8%. They note that the numbers come from improving inventory and Alletel merger synergies, which will offset elevated handset subsidies and LTE prep costs. DB thinks that a strong DROID X launch in July, and two-for-one deals on handsets, though in response to Apple's (Nasdaq: AAPL) iPhone 4 launch, will increase their smartphone penetration to 25%. DB sees 1.8% growth in post-paid revs Y/Y, 6.2% growth in service revs ,and 1.05% in post-paid churn. Total wireless adds are expected to be 925,000, with 575K post-paid. ARPU for post-paid subs should come in at $53.52.
Verizon Communications Inc. is expected to release their Q310 earnings on Friday, October 22, 2010, at approximately 8:00am EDT. Stay tuned to StreetInsider.com's EPS Central section to see our analysis of the highly-anticipated quarterly results within seconds of their release.
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