It's light speed ahead for Verizon Communications
What analysts say:
- Buy, sell, or waffle? A total of 28 analysts offer an opinion on Verizon. Of these, 12 have a buy recommendation, 15 straddle the fence with a hold, and one suggests selling. With more than 1,225 investors rating Verizon in the Motley Fool CAPS community, the company also holds a four-star rating (out of five possible).
- Revenues. On average, analysts see revenue ticking up 2% to $23.6 billion this quarter.
- Earnings. Analysts envision earnings dropping 10% to $0.62 per share.
What management says:
Verizon is gearing up for a competitive slugfest this holiday season and beyond in a number of areas. Management responded to AT&T's
What management does:
When a company is spending billions to upgrade an extensive network, changes don't happen fast. While adoption of the services is going well, Verizon's margins are still weakening under the increased investments. Though stabilizing, net margins have also been clipped by restructuring charges.
3/06 |
6/06 |
9/06 |
12/06 |
3/07 |
6/07 |
|
---|---|---|---|---|---|---|
Gross |
63.4% |
61.8% |
60.8% |
60.3% |
60.5% |
60.5% |
Operating |
16.9% |
16.3% |
15.9% |
16.1% |
16.5% |
16.8% |
Net |
10% |
8.8% |
8.4% |
7.0% |
6.8% |
6.7% |
One Fool says:
Verizon's wireless business that it operates with partner Vodafone
Investors should stack up the mobile metrics of AT&T and Verizon Wireless to see what really happened this quarter, and whether Verizon's iPhone killer has a chance of coming through for the company this holiday season.
For more telecom Foolishness: