Verizon Earnings: What to Expect
Telecommunications giant Verizon is set to announce its earnings results, and investors are eager to know what’s in store. The company’s previous quarter was a mixed bag, with revenue meeting expectations but operating margin estimates falling short.
A Look Back at Last Quarter’s Performance
Verizon reported revenues of $32.8 billion, flat year on year, and a narrow beat of analysts’ earnings estimates. However, the company lost 290,000 customers, ending up with a total of 144.5 million. This performance has left investors wondering if Verizon is a buy or sell going into earnings.
Analysts’ Expectations for This Quarter
This quarter, analysts expect Verizon’s revenue to be flat year on year at $33.42 billion, an improvement from the 2.6% decrease recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.18 per share. However, analysts have grown increasingly bearish, with 11 downward revisions to revenue estimates over the last 30 days.
Peers’ Performance Offers a Glimpse into What to Expect
Some of Verizon’s peers in the consumer discretionary segment have already reported their Q3 results. Nike’s revenues decreased 10.4% year on year, meeting analysts’ expectations, while Scholastic reported revenues up 3.8%, topping estimates by 1.6%. These results have given investors a hint of what to expect from Verizon.
Investor Sentiment and Stock Price
Despite positive sentiment among investors in the consumer discretionary segment, with share prices up 2.7% on average over the last month, Verizon’s stock price has remained unchanged. The company is heading into earnings with an average analyst price target of $47.47, compared to the current share price of $43.98.
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While Verizon’s earnings are highly anticipated, there’s another stock that’s worth considering. A relatively under-the-radar profitable growth stock is benefitting from the rise of AI, and it’s available to investors for free. With the potential for long-term growth, this stock is definitely worth a closer look.
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