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STOCKS SLIP WITH MIDEAST TENSIONS, EARNINGS IN PLAY

Oil pares losses as traders anticipate Israel's response to Iranian attack

Verizon (VZ) Beats Q2 Earnings, Lags Revenues Estimate

Zacks Equity Research
Updated

Verizon Communications Inc.VZ is the largest telecom operator in the U.S. providing high-end wireless and wireline services to individuals, business enterprises and government agencies.

The U.S. telecom industry is facing severe competitive pressure at present. Aggressive pricing competition and higher promotional activities are likely to hurt the company’s financial results. Verizon has predicted flat year-over-year earnings for 2016 as it does not see enough variables to deliver growth in the coming year. However, the company expects to return to growth trajectory starting 2017.

Verizon is presently focusing on online content delivery, mobile video and online advertising for growth. In this regard, the acquisition of AOL and Millennium Media and the launch of its new mobile video service named “Go90” should generate significant revenues for the company in the quarter. Moreover, with the intention to integrate its AOL and Millennium Media assets, Verizon agreed a deal to purchase Yahoo! Inc.‘s YHOO core assets for $4.8 billion.

Verizon currently carries a Zacks Rank #3 (Hold). The company has generated a positive average earnings surprise of 1.52% in the previous four quarters. We have highlighted some of the key stats from this just-revealed announcement below:

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Earnings: The Company beats first quarter earnings. Our consensus called for EPS of 93 cents while the company reported EPS of 94 cents.

Revenue: Verizon reported total revenue of $30,532 million missing the Zacks Consensus Estimate of $31,117 million.

VERIZON COMM Price and EPS Surprise

VERIZON COMM Price and EPS Surprise | VERIZON COMM Quote

Key States to Note: In the reported quarter, Verizon added 0.615 million retail postpaid connections. Retail postpaid churn increased to 0.94% from 0.90% in the prior-year quarter. At the end of second quarter, Verizon had 113.154 million retail connections, up 3.3% year over year.

Check back later for our full write up on this Verizon earnings report later!

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YAHOO! INC (YHOO): Free Stock Analysis Report
 
VERIZON COMM (VZ): Free Stock Analysis Report
 
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