Telecom ETFs To Watch On Verizon Communications Inc. Report [Vanguard Telecommunication Services ETF]

telecomWith unprecedented growth in high-speed mobile Internet traffic, in particular wireless data and video, the telecom industry is evolving into a very competitive space. Heightened competition due to increasing mergers & acquisition activities and improved offerings is a major headwind for telecom stocks.

Amid this competitive pressure, the telecom giant Verizon Communications Inc. (NYSE:VZ) once again delivered double-digit earnings growth for the fourth quarter, marking 2013 as a year of strong growth. This suggests increasing confidence in the company’s growth outlook.

Verizon also plans to buy the digital media division of the world’s largest chipmaker Intel (INTC). Further, the company is expected to close its $130 billion buyout of Vodafone’s (VOD) 45% stake on February 21.

Verizon Earnings in Focus

The company reported earnings of 66 cents per share, up 73.7% from the year-ago quarter and a penny ahead of the Zacks Consensus Estimate. Revenues rose 3.4% year over year to $31.1 billion, and managed to surpass the Zacks Consensus Estimate of $31.0 billion. Strong performances were largely driven by continued subscriber growth and improving wireless and FiOS services.

With this, full-year 2013 earnings came in at $2.84 (up 26.8% year over year) on revenues of $120.6 billion (up 4.1% year over year).

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