Healthy Wireless Traction To Aid Verizon (VZ) Q3 Earnings
Zacks Investment Research | Oct 22, 2019 09:44PM ET
Verizon Communications Inc. (NYSE:VZ) is scheduled to release third-quarter 2019 results before the opening bell on Oct 25. The company is likely to have recorded higher year-over-year revenues from the Wireless segment, which accounts for lion’s share of total revenues.
Factors at Play
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 Atlanta, Detroit, Indianapolis, Washington DC, Phoenix, St. Paul, New York City, Panama City and Boise to bring the tally to 13. Also, Verizon launched its fifth 5G-enabled device — Inseego Corp.’s MiFi M1000 — that combines large bandwidth and fast download speeds for data-extensive applications. These are expected to be reflected in third-quarter results.
The Wireless segment margin is likely to have witnessed healthy improvement in on the back of a solid fiber-optic network. Notably, the segment EBITDA is expected to improve 0.9% year over year to $11,063 million. Net subscriber addition in the domestic Wireless retail postpaid division is likely to be 527 million, up from 515 million in the prior-year quarter.
Overall Expectations
The Zacks Consensus Estimate for the Wireless segment operating income stands at $8,769 million, indicating a rise of 3% from the year-ago reported number. The consensus estimate for the segment’s operating revenues is pegged at $23,437 million, suggesting 2% growth from the year-ago reported figure of $22,973 million. The higher revenue expectations can be attributed to an uptick in demand and an upgrade to state-of-the-art infrastructure.
The consensus mark for total revenues is $32,715 million. It generated revenues of $32,607 million in the prior-year quarter. The Zacks Consensus Estimate for earnings is currently pegged at $1.24 per share, up from $1.22 reported in the year-earlier quarter. (Read More: Earnings ESP Filter .
Verizon Communications Inc. Price and EPS Surprise
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