Verizon Q3 Earnings Preview: 'Slow And Steady Comeback' Of Telecom Could Be Evident Tuesday

Telecommunications company Verizon Communications VZ is one of several Dow Jones Industrial Average companies reporting financial results during the trading week.

Here's a look at the analyst estimates and key items to watch in the earnings report, with Verizon set to report Q3 results before market open Tuesday.

Earnings Estimates: Analysts expect Verizon to report third-quarter revenue of $33.43 billion, up from $33.34 billion in last year's third quarter, according to data from Benzinga Pro.

The company has missed analyst revenue estimates in two straight quarters and four of the last six quarters. Overall, Verizon looks to get back on track, with six revenue beats in the last 10 quarters.

Analysts expect Verizon to report third-quarter earnings per share of $1.18, down from last year's $1.22 in the same quarter. The company has met or beat analyst estimates for earnings per share in eight straight quarters and nine of the last 10 quarters. While the company has a strong track record of meeting expectations, Verizon only beat estimates in four of the last 10 quarters.

Read Also: Verizon Vs. AT&T: Wireless Giants Brace For Q3 Earnings Face-Off

Key Items to Watch: Verizon has posted several strong quarters of net additions, which come as the telecom company has offered bundled plans that give customers free streaming platform subscriptions as a perk.

One area to watch is bundling usage and the latest subscriber figures, especially since other telecom companies are reporting quarterly results this week.

Freedom Capital Markets Chief Global Strategist Jay Woods said the earnings from Verizon, AT&T and T-Mobile this week come with excitement in the air for telecoms.

"If you are as old as I am then you remember the high flying days of the great telecom stocks in the late 90's. If you're not, then you just look at them as boring stocks that rarely move and pay a nice dividend. That's fair, but if you haven't noticed, they are making a slow and steady comeback," Woods said in a weekly newsletter.

Woods said Verizon shares have "broken out of a major consolidation zone" year-to-date.

As one of several Dow Jones stocks reporting for the week, ETFs like the SPDR Dow Jones Industrial Average ETF DIA, which track the well-known stock market index, could be highly volatile based on the earnings results.

Among the key items to watch from the earnings report could be recent spectrum licenses purchased and job cuts as part of a downsizing effort.

Here are recent analyst ratings on Verizon and their price targets:

• Scotiabank: Maintained Sector Perform rating, raised price target from $46.25 to $47.25.
• Tigress Financial: Maintained Buy rating, raised price target from $52 to $55.
• Bank of America: Maintained Neutral rating, raised price target from $41 to $45.
• Citigroup: Maintained Buy rating, raised price target from $47 to $49.
• Raymond James: Maintained Outperform rating, raised price target from $44 to $48.

VZ Price Action: Verizon stock is down 0.6% to $43.68 on Monday, versus a 52-week trading range of $31.26 to $45.36. Verizon stock is up 12.5% year-to-date in 2024.

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