Seeking Alpha

Verizon authorizes 100M-share buyback program; will it be used?

  • Verizon (VZ) has signed off on a buyback program good for repurchasing up to 100M shares through Feb. 28, 2017. The program, arriving two weeks after the Vodafone/Verizon Wireless deal officially closed, is in theory good for repurchasing nearly 2.5% of outstanding shares.
  • However, CFO Fran Shammo stated last month he doesn't expect Verizon to buy back any shares for at least 2-3 years, as it works to pay off the $60B+ in debt it took on to help finance the Vodafone deal.
  • Verizon has largely refrained from buybacks in recent years, keeping its options open as it made giant Verizon Wireless dividend payments to Vodafone. The carrier repurchased only 3.5M shares through a 100M-share, three-year program that expired last month.
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Comments (2)
  • mr_dinky_dot_bomb
    , contributor
    Comments (360) | Send Message
     
    Now that VZW is wholly owned, the ratio of wireline revenue to total revenue per share has gone way down -- making a share repurchase more attractive.

     

    The priority has to be on debt reduction, although the dividend payout is high enough to compete for free cash flow.
    7 Mar 2014, 06:02 PM Reply Like
  • J. L.Sifferle
    , contributor
    Comments (2) | Send Message
     
    Looks like Verizon Management is doing some showcasing to deflect the attention of it shareholders and the investing public from its extravagant purchase of the minority interest in Verizon wireless at a price which greatly exceeded its reasonable value.
    9 Mar 2014, 03:03 PM Reply Like
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