Verizon Communications Inc. (NYSE: VZ) is scheduled to release its second-quarter financial results before the markets open on Tuesday. The consensus estimates call for $1.14 per share in earnings and $31.75 billion in revenue. The same period of last year reportedly had $0.96 per share and $30.55 billion, respectively.
Recently, at Credit Suisse started Verizon shares with an Outperform rating and a $58 price target. The call noted that its wireless focus is starting to pay dividends for the company, and it implied upside of 13%, before taking Verizon’s 4.6% dividend yield into consideration.
Credit Suisse said of Verizon:
We believe wireless competition has stabilized and wireless revenue is returning to sustainable growth near-term, while Verizon has invested enough in pre-positioning for 5G that this important technology shift in the next few years should, at a minimum, not be a share loss event for Verizon. Furthermore, after two years of deterioration, Verizon’s already industry-leading returns should start to improve again via its major $10 billion cost savings plan, stable capex spending (5G is less expensive than feared and fixed wireless success-based post-trials), record low churn, the benefit of tax reform and abstinence from dilutive M&A. Interestingly, Verizon having remained focused on its core wireless business now meaningfully differentiates it from AT&T as an investment vehicle, and the shift to new, tech-focused CEO Mr. Vestberg suggests to us an even lesser likelihood of media/cable M&A going forward.
In the past 52 weeks, Verizon has performed more or less in line with the broad markets, or up about 14%. In just 2018 alone though, the stock is down 4%.
A few other analysts weighed in on Verizon ahead of the earnings report:
- Goldman Sachs has a Buy rating and a $56 price target.
- Deutsche Bank has a Buy rating with a $49 price target.
- Jefferies has a Hold rating with a $52 target price.
- JPMorgan has an Overweight rating and a $58 target.
- William Blair has a Market Perform rating.
Shares of Verizon were last seen at $50.58, with a consensus analyst price target of $56.00 and a 52-week range of $42.80 to $54.77.
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
