Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

News Update: Verizon (NYSE:VZ) Drops on Downgrade at FBR Capital

|Includes: Verizon Communications (VZ)

01/27/2010-Shares of Verizon Communications (NYSE:VZ) are trading 1.3% lower to $29.78 Wednesday after FBR Capital analyst David Dixon downgraded the company to Market Perform and cut his fiscal 2010 EPS forecast to $2.29; previously his forecast matched consensus estimates of $2.41.

Dixon writes, "We believe that a continued weak economy, high tariff rates for legacy services, and intense wireline margin pressure have driven management to accelerate head-count reductions and reposition its sales force to focus on the higher-margin segment of its enterprise customer base--effectively de-emphasizing revenue growth for margin stability."

 



Disclosure: In DOWNTREND as of 1/7/10