Healthy Wireless Traction To Aid Verizon (VZ) Q2 Earnings
Zacks Investment Research | Jul 30, 2019 08:43AM ET
Verizon Communications Inc. (NYSE:VZ) is scheduled to release second-quarter 2019 results before the opening bell on Aug 1. The company is likely to witness solid year-over-year revenues from the Wireless segment, which accounts for the lion’s share of total revenues.
Whether this will benefit its bottom line remains to be seen.
Key Factors
During the quarter, Verizon spurred technological innovation and economic development by making the ecosystem more pervasive with 4G LTE, and focused on increased 5G deployment across select U.S. cities. The telecom behemoth launched 5G Ultra Wideband network in certain locations of Chicago and Minneapolis, followed by a similar move in Denver and Providence. This will enable the company to deliver faster peak data speeds and capacity for customers, driven by customer-focused planning, disciplined engineering and constant strategic investments. This, in turn, is likely to translate into higher revenues for the quarter.
The company’s focus on online content delivery, mobile video and online advertising should also stoke growth. During the quarter, Verizon collaborated with industry-leading web-based video playback services providers — THEO Technologies and IRIS.TV — to enrich its video streaming network. The move is expected to play a crucial role in the wireless carrier’s delivery of new mobile video services with advertising functionality to monetize video content. The AI-powered programming platform will use machine learning techniques to generate unique insights about audience behavior and monetize content while retaining viewers through personalized touch.
The company anticipates healthy improvement in the Wireless segment margin on the back of a solid fiber-optic network. During the second quarter, Verizon inked an agreement with the National Basketball Association (“NBA”) to augment network capabilities of all the 29 arenas that host NBA teams. Leveraging the extensive fiber network deployment and video broadcast distribution capabilities of its media services division, the strategic deal enables Verizon to better connect with the sporting buffs. Notably, the segment EBITDA is expected to improve to $10,933 million from $10,733 million in the year-ago quarter.
Overall Expectations
Buoyed by such tailwinds, the Zacks Consensus Estimate for operating revenues for the Wireless segment is currently pegged at $22,912 million. Notably, it reported revenues of $22,449 million in the year-ago quarter. The higher revenue expectations can be attributed to an uptick in demand and an upgrade to state-of-the-art infrastructure.
Total revenues for the company are expected to be $32,395 million. It generated revenues of $32,203 million in the prior-year quarter. (Read More: Earnings ESP Filter .
Get The News You Want
Verizon Communications Inc. Price and EPS Surprise
Zacks Investment Research
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.