Nomura Securities on Telecom: Q1 Preview - AT&T (T) and Verizon (VZ) Could Have Same EPS Outcome
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Up: 8 | Down: 5 | New: 26
Rating Summary:
25 Buy, 27 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Nomura Securities on Telecom: Q1 Preview
Analyst, Mike McCormack, said, "AT&T (NYSE: T) and Verizon (NYSE: VZ) could emerge with identical 2012 $2.40 EPS outcomes: Consensus expectations are factoring in overly conservative expectations for AT&T, while Verizon’s remain aggressive. With the outlook for Verizon’s Wireline margin recovering at a slower pace, we expect much of the differential currently factored into consensus expectations to compress. Optics of Sprint’s (NYSE: S) results will be affected by the timing of the multi-year network modernization, limiting the utility of 1Q results for forecasting purposes. Timing of the next iPhone refresh is critical to EPS outlooks. Should the iPhone (Nasdaq: AAPL) appear in 3Q12, we see risk to Verizon estimates, and if it appears in 4Q12, we see potential upside to AT&T."
AT&T (NYSE: T) (Buy, $32): 1Q12E EPS $0.59 vs. Street at $0.57
Verizon (NYSE: VZ) (Neutral, $37): 1Q12E EPS $0.56 vs. Street at $0.57
Sprint (NYSE: S) (Neutral, $2.50): 1Q12E EPS ($0.30) vs. Street at ($0.42)
Analyst, Mike McCormack, said, "AT&T (NYSE: T) and Verizon (NYSE: VZ) could emerge with identical 2012 $2.40 EPS outcomes: Consensus expectations are factoring in overly conservative expectations for AT&T, while Verizon’s remain aggressive. With the outlook for Verizon’s Wireline margin recovering at a slower pace, we expect much of the differential currently factored into consensus expectations to compress. Optics of Sprint’s (NYSE: S) results will be affected by the timing of the multi-year network modernization, limiting the utility of 1Q results for forecasting purposes. Timing of the next iPhone refresh is critical to EPS outlooks. Should the iPhone (Nasdaq: AAPL) appear in 3Q12, we see risk to Verizon estimates, and if it appears in 4Q12, we see potential upside to AT&T."
AT&T (NYSE: T) (Buy, $32): 1Q12E EPS $0.59 vs. Street at $0.57
Verizon (NYSE: VZ) (Neutral, $37): 1Q12E EPS $0.56 vs. Street at $0.57
Sprint (NYSE: S) (Neutral, $2.50): 1Q12E EPS ($0.30) vs. Street at ($0.42)
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