Verizon: Don't Let Quarterly Noise Distract You

Summary

  • Disappointing guidance for 2022 resulted in Verizon's worst day since the pandemic market crash of 2020.
  • Competitive pressures resulting in lower EPS and revenue growth and fear of rising interest rates and inflation were in the spotlight during the day.
  • The long-term investment thesis, however, remains intact and Verizon continues to solidify its leadership in the space.
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Strong competitive advantages, sustainable high return on capital and long-term shareholder value creation do not depend on meeting/beating quarterly estimates or slight revisits in the annual EPS and revenue growth numbers.

This is exactly what's currently happening at Verizon (NYSE:

This article was written by

Vladimir Dimitrov, CFA is a former strategy consultant within the field of brand and intangible assets valuation. During his career in the City of London he has been working with some of the largest global brands within the technology, telecom and banking sectors. He graduated from the London School of Economics and is interested in finding reasonably priced businesses with sustainable long-term competitive advantages.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of VZ either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Please do your own due diligence and consult with your financial advisor, if you have one, before making any investment decisions. The author is not acting in an investment adviser capacity. The author's opinions expressed herein address only select aspects of potential investment in securities of the companies mentioned and cannot be a substitute for comprehensive investment analysis. The author recommends that potential and existing investors conduct thorough investment research of their own, including detailed review of the companies' SEC filings. Any opinions or estimates constitute the author's best judgment as of the date of publication, and are subject to change without notice.

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