Verizon’s Earnings: Wall Street Expects ~10% Growth in 2Q15
What Do Wall Street Analysts Expect from Verizon in 2Q15?
Verizon’s earnings in 2Q15
Verizon (VZ) is expected to report its results for 2Q15 on July 21, 2015. In this series, we’ll look at how these results will turn out. Wall Street analysts expect strong YoY (year-over-year) growth in its earnings in 2Q15. Based on the consensus of Wall Street analysts as of July 10, 2015, Verizon’s adjusted EPS (earnings per share) is expected to grow ~10% YoY during the quarter.
In the previous quarter, the company’s adjusted EPS grew by 4% YoY. In 4Q14, the telecom company’s adjusted EPS rose by 7% YoY.
In 2Q14, Verizon marginally beat Wall Street analysts’ consensus estimates. The telecom company also reported slightly lower-than-expected earnings during 3Q14 and 4Q14. However, Verizon’s earnings surprise was significant in the last reported quarter. The telecom company beat Wall Street analysts’ consensus EPS by ~7.40% during 1Q15.
Verizon—the largest US telecom company
Verizon is the biggest US telecom company by market capitalization. China Mobile (CHL) is the world’s largest telecom company with a market capitalization of ~$240 billion as of July 10, 2015. On the same date, Verizon’s market capitalization was ~$189 billion. It’s closely followed by AT&T (T)—the second largest US telecom company by market capitalization. AT&T’s market capitalization was ~$179 billion on the same date.
Both Verizon and AT&T are integrated telecom companies. They both have wireless and wireline operations. Verizon is the market leader in wireless telecom services. The second largest wireless carrier in the US is AT&T. It dominates the wireline telecom space in the US. Verizon is the second largest US wireline telecom company.
Instead of investing in Verizon’s stock, you can get diversified exposure to the company by investing in the Technology Select Sector SPDR (XLK). The ETF held ~4.80% in the carrier as of June 30, 2015.
You can get more diversified exposure to the company by investing in the iShares Core S&P 500 ETF (IVV). IVV held ~1% in Verizon on June 30.
Browse this series on Market Realist:
