Verizon Communications Inc.
) is set to release its fourth-quarter 2013 results before the
opening bell on Jan 21, 2014.
In the last quarter, the company delivered a 2.67% earnings
surprise. Let's see how things are shaping up for this
Factors to Influence This Quarter
Verizon Communications has a strong foothold within the
wireless and wireline sectors, with ample growth opportunities.
Rapid evolution of 4G LTE and high smartphone sales as well as
increased penetration of data plans will drive the company's
profitability over the long term.
Expansion of the FiOS network and strength in enterprise
strategic service areas such as global IP, cloud computing,
security and managed services will be accretive to the company's
wireline segment. The company is focused on improving its
long-term profitability in the wireline business through product
streamlining, process simplification initiatives and cost
However, persistent erosion in access lines due to competitive
threat from VoIP service providers and cable companies remains a
major headwind for Verizon. Further, iPhone subsidies, hindrances
in spectrum deals and uncertain returns from investments are
other risks for Verizon.
Our proven model does not conclusively show that Verizon
Communications is likely to beat the Zacks Consensus Estimate
this quarter. This is because a stock needs to have both a
and a Zacks Rank #1, 2 or 3 for this to happen. Unfortunately,
this is not the case here as elaborated below.
: Verizon holds a Zacks Rank #3 (Hold) due to lack of directional
: The Most Accurate estimate and the Zacks Consensus Estimate are
the same at 65 cents. This results in an of 0.00% earnings
ESP for Verizon Communications and makes surprise prediction
difficult for us. So we caution investors against the stock going
into the earnings announcement.
Other Stocks to Consider
Here are some other companies to consider as our model shows
these have the right combination of elements to post an earnings
beat this quarter.
Cablevision Systems Inc.
) with earnings ESP of +77.78% and Zacks Rank #1 (Strong
) with earnings ESP of +9.38% and Zacks Rank #3.
) with earnings ESP of +3.13% and Zacks Rank #3.
CABLEVISION SYS (CVC): Free Stock Analysis
DIRECTV (DTV): Free Stock Analysis Report
SPRINT CORP (S): Free Stock Analysis Report
VERIZON COMM (VZ): Free Stock Analysis Report
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