Pure hubris on the part of Verizon. Their results at running a media company will be about the same as how they have fared at Terremark and Hughes Telematics (both of which they have run into the ground).
VZ should stick to their knitting and remember they are just plumbers. They were fortunate enough to be part of a two player oligopoly but that run is coming to an end. TMUS and Sprint are starting to give them a run for their money. VZ is a very fat company with many overlapping roles. The future is not nearly as bright as was the past.
13 of their 15 picks are up. The overall portfolio is up 14% since 12/5.
I'll take it. But, yeah, they shouldn't have picked a bank in Texas with oil prices falling.
New to the company but there were some one-time charges that would account for the shortfall:
"$10.8 million of inventory impairments and a $32.0 million increase in reserves for warranty and litigation. FY 2013's fourth quarter pre-tax income included $2.5 million of inventory impairments, in cost of sales, as well as an insurance accrual reversal of $4.8 million".
I count $43M right off the bottom line.