IB Net Payout Yields Model

High Margins at Verizon Wireless Unlikely to Last


For the fourth quarter of 2013, Verizon Communications (NYSE: VZ  ) reported a surge in operating margins in the wireless sector due to lower subsidies for new accounts. The question is whether the wireless provider can continue generating these higher margins with Sprint Nextel  (NYSE: S  ) and T-Mobile (NYSE: TMUS  ) in customer-acquisition mode.

While Verizon is generating solid gains in FiOS Internet and video segments, the company is increasingly dominated by its wireless division. In total, fourth-quarter revenue only gained 3.4%, but the company was able to hold expenses down. The combination sent operating margins surging, but the lack of spending to attract new customers could hurt growth in 2014 and beyond.

Read the full article here.


Disclosure: No position mentioned. Please review the disclaimer page for more details. 



Comments

Popular posts from this blog

Aurora Cannabis: Deal Or No Deal

C3.ai: Trough Quarter

C3.ai: Out Of Steam (Rating Downgrade)