Telecommunications giant Verizon (NYSE:VZ) will be announcing earnings results tomorrow morning. Here’s what to look for.
Verizon met analysts’ revenue expectations last quarter, reporting revenues of $32.8 billion, flat year on year. It was a mixed quarter for the company, with a narrow beat of analysts’ earnings estimates but a miss of analysts’ operating margin estimates. It lost 290,000 customers and ended up with a total of 144.5 million.
Is Verizon a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Verizon’s revenue to be flat year on year at $33.42 billion, improving from the 2.6% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.18 per share.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 11 downward revisions over the last 30 days (we track 13 analysts). Verizon has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Verizon’s peers in the consumer discretionary segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Nike’s revenues decreased 10.4% year on year, meeting analysts’ expectations, and Scholastic reported revenues up 3.8%, topping estimates by 1.6%. Nike traded down 6.8% following the results while Scholastic was up 6%.
Read our full analysis of Nike’s results here and Scholastic’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 2.7% on average over the last month. Verizon’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $47.47 (compared to the current share price of $43.98).
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