Verizon Earnings Show Market Improvements, High Valuation
Verizon Communications (VZ) continues to be able to squeeze out costs from a slow growing revenue base. Though Q212 revenues only grew 3.7%, the bottom line grew by 12.3%. This gain was largely due to a reduction in the cost of services and sales by $262M combined with a $38M reduction in interest expense.
Verizon is a global leader in delivering broadband and other wireless and wireline services to consumer, business, government and wholesale customers. Verizon Wireless has more than 94M retail customers though it is 45% owned by Vodafone (VOD).
Though operating efficiency continues to improve the most concerning part has to be that wireless revenue is only increasing 7.3%. If Sprint (S) ever becomes a more formidable competitor, Verizon might see the ability to lower costs and improve margins come to an end with little growth to spare.
Read the full article at Seeking Alpha.
Disclosure: Long AAPL. Please review the disclaimer page for more details.
Verizon is a global leader in delivering broadband and other wireless and wireline services to consumer, business, government and wholesale customers. Verizon Wireless has more than 94M retail customers though it is 45% owned by Vodafone (VOD).
Though operating efficiency continues to improve the most concerning part has to be that wireless revenue is only increasing 7.3%. If Sprint (S) ever becomes a more formidable competitor, Verizon might see the ability to lower costs and improve margins come to an end with little growth to spare.
Read the full article at Seeking Alpha.
Disclosure: Long AAPL. Please review the disclaimer page for more details.
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