|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||5.65 - 5.76|
|52 Week Range||5.42 - 9.65|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||0.00 (0.00%)|
|1y Target Est||N/A|
In the previous article, we discussed the expectations for Verizon’s (VZ) postpaid phone customer net additions in 4Q17. Let’s take a look at the kind of prepaid customer net additions that we could expect from Verizon. Wall Street analysts expect 100,000 prepaid customer net additions from Verizon in 4Q17, which is due to the increasingly intense competition in the prepaid market.
As Verizon (VZ) discusses the commercial deployment of its 5G wireless broadband service to residential customers in select US (SPY) cities starting in 2H18, it is important to examine how this move might impact its short-term spending and profitability. Verizon said it was eyeing up to five markets in the US, including Sacramento, California’s, for the commercial launch of its high-speed wireless Internet to household customers. According to Verizon’s estimates, about 30 million households across the US are ready for 5G wireless Internet speed.
Telecom carriers’ expected performances in 2018 are reflected in Wall Street analysts’ ratings or recommendations. Verizon Communications (VZ) was assigned a target price of $51.73, which implies a potential return of -2% from its closing price of $52.60 as of January 4, 2018.
Soon after the US (SPY) Congress passed legislation to make the biggest change to the US tax code since the 1980s, AT&T (T) celebrated the development by announcing that it would boost its investments in the US by $1.0 billion in 2018. In boosting its investment budget and rewarding employees with a bonus in the wake of the most comprehensive US tax reform in decades, AT&T appeared to show that it was expecting to be more prosperous in an environment of lower corporate taxes. The new tax law set the corporate tax rate at 21%, down from the existing tax rate of 35%.
The top US wireless carriers include Verizon Communications (VZ), AT&T (T), T-Mobile (TMUS), and Sprint (S). The prepaid market remains highly competitive but still represents a sizable opportunity for adding customers. AT&T’s Cricket and AT&T Prepaid brands, Sprint’s Boost and Virgin Mobile brands, Verizon’s TracFone brand, and T-Mobile’s MetroPCS brand compete directly in the prepaid segment.
In its legal proceedings with the US (SPY) Department of Justice (or DOJ) over the proposal to acquire Time Warner (TWX), AT&T (T) has already scored a small victory: a seemingly favorable start date for the trial of the antitrust case. Soon after the DOJ sued to block the merger deal, AT&T responded by amending its agreement with Time Warner to extend the deadline to April 22, 2018. The DOJ wanted the trial of its antitrust lawsuit against AT&T to begin on May 7, 2018, outside the merger parties’ deal deadline.
While top US wireless carriers Verizon Communications (VZ), AT&T (T), T-Mobile (TMUS), and Sprint (S) have reined in their capital expenditures or capex ahead of their 5G (fifth-generation) deployments, Wall Street analysts expect capital spending to ramp up in 2018—primarily due to the implementation of FirstNet and the 600 MHz spectrum.
The national telecom's weak business could have been saved by a merger with T-Mobile, but shares plunged when that idea got the official boot.
The larger component is wireless service revenues, and the smaller component is wireless equipment revenues. Service revenues represent a stable revenue stream common to wireless carriers like Verizon Communications (VZ), T-Mobile (TMUS), AT&T (T), and Sprint (S). Verizon generated wireless service revenues of $47.2 billion in the first nine months of 2017—a ~6.0% reduction YoY (year-over-year).