Earnings Preview: Verizon

Verizon Communications (VZ) is expected to report Q3 earnings before market open  Monday Oct. 27, with a conference call scheduled for 8:30 am.

Guidance

Analysts are looking for EPS of 66c on revenue of $24.52B. The consensus range is 60c to 70c for EPS, and $24.22B to $24.76B for revenue, according to First Call.

Analyst Views

Wachovia said in August that it believes Verizon's launch of its FiOS product in New York City is going well, but the firm does not believe the gains from that launch will allow the company to beat Street Q3 estimates. The firm stated in September that it believes the company's Q3 net adds will be flat sequentially. Wachovia thinks the company will continue to be impacted by Apple's (AAPL) iPhone. The firm maintained their Market Perform rating for the company.

In September, J.P. Morgan lowered its Q3 estimates for Verizon and AT&T (T) to reflect pressures in the wire-line and wireless businesses, and believes consensus estimates for both companies are too aggressive.

Comments

[Nextel Acce...:]

don't expect any surprises on Monday.

2008 Oct 24 05:29 PM