Verizon expected to report higher profit

Wall Street analysts are generally encouraged that Verizon (NYSE: VZ) will bring positive news when it announces third-quarter earnings Oct. 21, with consensus estimates of a profit of 92 cents a share, up from 77 cents a year ago.

As has been the case in recent years, the analysts focused on the carrier's wireless business, ignoring growth in FiOS high-speed broadband and video services. That wireless business is pursuing a "useful tactic" to retain existing customers by allowing service plans to be paid over a 20-month period, IG analyst David Madden concluded.

While 92 cents is a good figure, Forbes pointed out that three months ago the number was 93 cents. Nevertheless, the publication said, 80 percent of analysts rated Verizon as a "buy" based on earnings projections of $3.54 a share and revenue of $31.58 billion, about 4 percent higher than year-ago revenue of $30.28 billion.

Verizon's numbers are expected to be better than AT&T (NYSE: T), where earnings of 64 cents a share are expected to be down 3 percent year-over-year, Forbes added.

For more:
- IG has this analysis
- Forbes has this story

Related articles:
Verizon shelves Redbox Instant
Verizon extends symmetrical FiOS speeds to small businesses
Verizon Wireless' dark fiber backhaul quest poses opportunities, challenges for wholesalers

Suggested Articles

Amazon has filed a motion that seeks to pause Microsoft's work on the Pentagon's $10 billion cloud contract until a court rules on its protest.

Vodafone Group and Sunrise announced a partnership that allows Sunrise's enterprise customers to tap into Vodafone's business services.

Verizon and Google have teamed up for a symbiotic relationship that puts Google's Stadia gaming system into the hands of new Fios subscribers.