Verizon’s (VZ) wireless network witnessed numerous innovations before emerging as the preferred network of American households, and the efforts are paying off well. The telecom conglomerate will be publishing its third-quarter results at 7:25 AM on October 23, the first quarterly report after new CEO Hans Vestberg took office. Experts’ analysis suggests that earnings will increase by about 19% to $1.14 per share on revenues of $31.50 billion.
In recent years, Verizon brought about strategic changes to its core operation with additional focus on media, in line with the fast-changing dynamics in the highly competitive telecom sector that witnessed a slew of mergers this year. The wireless segment, which accounts for more than three-fourths of the revenue, will continue to lead the company’s business in the near future. The key to sustaining and expanding the subscriber base will be competitive pricing.
The company expects to leverage Vestberg’s technical acumen to build network infrastructure and prepare itself to take forward the recently launched 5G service. When it comes to monetizing the innovations, a lot will depend on how effectively the management executes its cost-cutting program that targets to save about $10 billion in the next three years.
The wireless segment, which accounts for more than three-fourths of the revenue, will continue to lead the company’s business
In the second quarter, adjusted earnings of New York-based Verizon climbed 25% annually to $1.20 per share, beating predictions. Meanwhile, the unadjusted profit was dragged down by one-time costs. Reflecting the strong subscriber growth and consistent customer loyalty, revenues grew 5.4% to $32.2 billion.
The company has been drawing strength from its fast-growing wireless service and positive operating cash flow across all markets to compete effectively with rivals like AT&T (T), which is scheduled to release results for the most recent quarter on October 24 before the opening bell. Nearly a year after acquiring Time Warner, AT&T recently rolled out its video-on-demand service, offering original content from HBO.
Verizon shares climbed to a 20-year high earlier this month. Over the past twelve months, the stock grew more than 10% to stay above its long-term average, while also outperforming the sector. It closed Thursday’s trading higher and continued to gain in the early trading hours Friday.
Micron Technology Inc. (NASDAQ: MU) Thursday said its fourth-quarter profit declined from last year, hurt by a sharp fall in revenues. Earnings, however, beat the market’s projection. On an adjusted
Shares of Philip Morris International Inc. (NYSE: PM) were down 1% on Thursday. The stock has dropped over 9% year-to-date. Although the tobacco industry has felt the pinch of inflation,
CarMax, Inc. (NYSE:KMX) reported second quarter 2023 earnings results today. Net revenues rose 2% year-over-year to $8.1 billion. Net earnings were $125.9 million, or $0.79 per share, compared to $285.2 million,