Verizon Looks Forward To A Solid Q2

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Verizon Communications ( VZ ) has risen for six straight days, and Wednesday's rise was likely boosted by kind words from a Morgan Stanley analyst.

Simon Flannery noted that the wireless carrier has launched initiatives in response to attractive plans from competitorsAT&T ( T ),Sprint ( S ) andT-Mobile ( TMUS ). He said Verizon CEO Lowell McAdam expects to report more than 1.4 million postpaid net adds in Q2.

"The second quarter will be strong for us, which is an indication the whole industry is strong," McAdam said July 10 on CNBC. He said his company expects record growth in tablets and strong growth in smartphones.

Verizon reports before the market opens July 22. Growth in Q2 would reverse a 20% decline in subscriber adds during Q1.

McAdam's comment on the cable business news channel sparked a 1.5% rally the day it was made, and the stock hasn't stopped.

Verizon's stock has moved basically sideways since the dawn of the wireless age, and earnings have done the same.

But EPS has picked up in the past couple of years. Growth was flat in 2011, rose 8% in 2012 and 22% in 2013. Analysts expect 25% growth this year and 9% growth in 2015.

Analysts are forecasting a 23% increase when Q2 results are announced.

Verizon is a member of the Telecom Services-Integrated industry group, ranked No. 19 out of 197 groups. It's ranked No. 1 out of 24 companies by EPS Ranking -- an 86 on a 1 to 99 scale.

Revenue growth has been slow, typically in the low single digits.

Verizon pays a dividend of 53 cents a quarter, which works out to a 4.2% annual yield. Dividend growth has been slow but steady. The company paid 38.5 cents in 2000, when Bell Atlantic became Verizon.

The next dividend is paid out Aug. 1 to shareholders of record July 10.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Personal Finance , Investing Ideas

Referenced Stocks: VZ , T , S , TMUS

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