Verizon Communications Inc. (NYSE: VZ) is scheduled to report third quarter 2019 earnings results on Friday, October 25, before the market opens. Analysts expect the company to report earnings of $1.24 per share. This compares to EPS of $1.22 reported in the prior-year quarter. Revenue is projected to see little change at $32.7 billion compared to $32.6 billion last year.
Verizon has seen revenue growth in the wireless segment and this momentum is expected to continue in the third quarter. The company continues to invest in its infrastructure which is a positive. The deployments of the 4G LTE and 5G services are also factors that will help drive growth for the company.
However, the weakness in the wireline business, caused mainly by the availability of cheaper alternatives, is likely to dampen the quarterly results. The company is also being negatively impacted by the rising cord-cutting trend and this is likely to be reflected in the third quarter results.
During the quarter, Verizon announced the sale of Tumblr to Automattic for undisclosed terms. Any updates on further strategic changes will be worth noting.
On Tuesday, Verizon announced an agreement with The Walt Disney Company (NYSE: DIS) to offer its wireless unlimited, Fios Home Internet and 5G Home Internet customers a year’s service of Disney+. This move is likely to benefit both companies significantly.
In the second quarter of 2019, Verizon beat earnings estimates but revenues missed the mark. Revenues dropped slightly to $32.1 billion from the prior year while adjusted EPS rose 3% to $1.23. Wireless revenues increased 1% while wireline revenues fell 5%.
For full-year 2019, Verizon expects both consolidated revenues and adjusted EPS to grow in low single digits.
Shares of Verizon have gained 10% thus far this year. The stock was up slightly in morning trade on Wednesday.
Verizon’s main competitor AT&T (NYSE: T) will report third quarter earnings on Monday, October 28.
Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a
PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the
With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,