Verizon Communications Inc. (NYSE: VZ) is scheduled to report its fourth-quarter financial results before the markets open on Thursday. The consensus estimates from Thomson Reuters are $0.88 in earnings per share (EPS) on $34.06 billion in revenue. The same period from the previous year had $0.71 in EPS on $33.19 billion in revenue.
This top telecommunications company also resides on the Merrill Lynch US 1 list. Verizon is a global leader in delivering the digital world. Verizon Wireless operates America’s self-described most reliable wireless network, with 109.5 million retail connections nationwide. Verizon also provides converged communications, information and entertainment services over America’s most advanced fiber-optic network, and it delivers integrated business solutions to customers worldwide.
Wall Street has applauded Frontier’s acquisition of Verizon’s wireline operations in California, Florida and Texas, which is expected to be completed at the end of March. Many feel that focusing on the higher margin segments at the company makes sense, and the sale to Frontier is a huge cash boost to the balance sheet.
Verizon could have a better 2016 than it did in 2015. If you include the 4.9% dividend yield in a total return calculation, analysts on Wall Street were looking for a 13.3% gain in 2016. That is after a total return of only 3.6% a year ago, but note that a year ago analysts actually were looking for Verizon to post a 17% total return.
Prior to the release of the earnings report, a few analysts weighed in on Verizon:
- BTIG Research downgraded it to a Neutral rating from Buy.
- JPMorgan reiterated an Outperform rating but lowered the price target to $55 from $57.
- Cowen reiterated a Market Perform rating with a $48 price target.
- Citigroup reiterated a Hold rating.
So far in 2016, Verizon has outperformed the market, with the stock only down 1.7% year to date. Over the past 52 weeks, not much has changed and the stock is only down 1.9%.
Shares of Verizon were trading down 1.7% at $44.11 on Wednesday, with a consensus analyst price target of $50.58 and a 52-week trading range of $38.06 to $50.86.
The Average American Is Losing Their Savings Every Day (Sponsor)
If you’re like many Americans and keep your money ‘safe’ in a checking or savings account, think again. The average yield on a savings account is a paltry .4% today, and inflation is much higher. Checking accounts are even worse.
Every day you don’t move to a high-yield savings account that beats inflation, you lose more and more value.
But there is good news. To win qualified customers, some accounts are paying 9-10x this national average. That’s an incredible way to keep your money safe, and get paid at the same time. Our top pick for high yield savings accounts includes other one time cash bonuses, and is FDIC insured.
Click here to see how much more you could be earning on your savings today. It takes just a few minutes and your money could be working for you.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.