Earnings Preview: Verizon

Verizon Communications (VZ) is expected to report Q2 earnings before market open Monday, July 28, with a conference call scheduled for 8:30 am ET.

Guidance

Analysts are looking for EPS of 65c on revenue of $24.19B. The consensus range is 63c to 70c for EPS, and $23.9B to $24.47B for revenue, according to First Call.

Analyst Views

Verizon has been some-what protected from the effects of the slowing economy, mainly because its local-phone service areas are not the ones closest to where the real-estate market is tumbling down. Some analysts were expecting the the slow economy to effect Verizon's numbers, but were relieved slightly when AT&T (T) reported strong Q2 results.

On July 3, Credit Suisse lowered Q2 and FY08 EPS estimates for the company based on increased line losses, slower DSL/FIOS growth, and lower wireless margins. The firm maintained its Neutral rating for the company. Oppenheimer stated on July 7th, it believes that Verizon Wireless did not suffer any major reduction in subscriber volume last quarter. The firm believes the company's capex has peaked, and noted that the company expects to reach an agreement with its workers' union before their contract expires on August 2.

Oppenheimer maintained its Market Perform rating for the company.