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Verizon (VZ) Beats Earnings and Revenues Estimates

Verizon Communications Inc.VZ is the largest telecom operator in the U.S. providing high-end wireless and wireline services to individuals, business enterprises and government agencies.

The U.S. telecom industry is facing severe competitive pressure at present. Aggressive pricing competition and higher promotional activities are likely to hurt the company's financial results. Verizon has predicted flat year-over-year earnings for 2016 as it does not see enough variables to deliver growth in the coming year. However, the company expects to return to growth trajectory starting 2017.

Verizon has recently taken a decision to merge its existing advertising programs, Relevant Mobile Advertising and Verizon Selects, with AOL Advertising Network, effective Nov 2015. Notably, in Jun 2015, Verizon took over AOL Inc. to consolidate its mobile advertising platform. The combination of these two ad technologies will provide valuable information to advertisers and allow them to effectively post their advertisements on AOL's web sites and most importantly through Verizon's latest Go90 mobile video service.

Verizon currently carries a Zacks Rank #3 (Hold). The company has generated a positive average earnings surprise of 1.77% in the previous four quarters. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: The Company beats third quarter earnings. Our consensus called for EPS of $1.02, and the company reported EPS of $1.04.

Revenue: Verizon reported total revenue of $33,158 million surpassing the Zacks Consensus Estimate of $33,003 million.

Key States to Note: In the reported quarter, Verizon added 1.289 million retail postpaid connections. Retail postpaid churn declined to 0.93% from 1% in the prior-year quarter. At the end of third quarter, Verizon had 110.76 million retail connections, up 4.3% year over year.

Stock Price: At the time of writing, the stock price of Verizon was up 1.98% in the pre-market trade on NYSE. Clearly the initial reaction to the release is positive. This may due to strong third quarter results and lower postpaid churn rate.

Check back later for our full write up on this Verizon earnings report later!

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


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

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