Verizon Communications (
) 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
) andT-Mobile (
). 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.
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
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
Revenue growth has been slow, typically in the low single
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
The next dividend is paid out Aug. 1 to shareholders of record