Telecommunications giant Verizon (NYSE:VZ) will report its earnings results tomorrow morning. Here you can read what you should pay attention to.
Verizon met analysts’ revenue expectations last quarter, reporting revenue of $32.8 billion, flat on a year-over-year basis. It was a mixed quarter for the company, with a narrow earnings forecast from analysts but a miss from analysts’ operating margin estimates. It lost 290,000 customers and ended up with a total of 144.5 million.
Is Verizon a Profitable Buy or Sell? Read our full analysis here, it’s free.
This quarter, analysts expect Verizon’s revenue to remain flat year-over-year at $33.42 billion, an improvement from the 2.6% decline recorded in the same quarter last year. Adjusted earnings are expected to be $1.18 per share.
On the earnings front, analysts covering the company have become increasingly bearish, with 11 downward revisions to revenue estimates in the last 30 days (we track 13 analysts). Verizon has missed Wall Street revenue estimates four times in the past two years.
Looking at Verizon’s peers in the consumer discretionary segment, some have already reported their third quarter results, which gives us an idea of what to expect. Nike’s revenues fell 10.4% year over year, meeting analyst expectations, and Scholastic reported a 3.8% increase in revenue, beating estimates by 1.6%. Nike fell 6.8% after the results, while Scholastic rose 6%.
Read our full analysis of Nike’s results here and Scholastic’s results here.
There was positive sentiment among investors in the consumer discretionary segment, with share prices rising by an average of 2.7% over the past month. Verizon’s share price is unchanged over the same period and is heading for gains with an average price target of $47.47 (compared to the current share price of $43.98).
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