J.P. Morgan Previews Verizon 4Q10 Earnings (VZ)

J.P. Morgan is out with its preview of Verizon's VZ 4Q10 earnings, as Verizon will report earning Jan. 25. In a note to clients, J.P. Morgan writes, "We expect Verizon to deliver strong 4Q wireless net adds of 1.42m (700k postpaid, 800k wholesale adds, -80k prepaid losses), US$50.39 ARPU, 1.3% churn (1.0% postpaid), and 47.0% margin. On the wireline side, we expect y/y revenue losses to moderate to 3.2% (vs. 3.6% in 3Q) and look for 21.8% wireline margin, up sequentially from 21.0% in 3Q. We look for 4Q10 EPS of US$0.56 (guidance implies $0.56-0.57)." J.P. Morgan maintains Neutral, and a $38 PT, on Verizon. Shares of VZ are trading pre-market at $34.80, up 0.55% from yesterday's close.