Verizon’s outlook on consolidated results for 2017
AT&T (T) and Verizon (VZ) are facing tough competition from smaller competitors Sprint (S) and T-Mobile (TMUS), which are using price cuts as an aggressive way to add customers. However, Verizon continues to focus on network leadership as well as growing and maintaining its high-quality subscriber base. Verizon is also concentrating on developing new ecosystems such as telematics, media, and IoT (Internet of Things), as well as long-term value creation for shareholders.
Wall Street analysts anticipate that Verizon’s adjusted EPS (earnings per share) will fall ~2.8% on a YoY (year-over-year) basis to reach ~$3.76 in 2017 as compared with $3.87 a year ago in 2016.
Key points from Verizon’s guidance
During Verizon’s recent 2Q17 earnings conference call, management reiterated its performance expectations for 2017. Verizon has guided for full-year 2017 total revenues “to be fairly consistent with 2016” on an organic basis with an improvement in wireless equipment revenue and service revenue trends. Further, the management anticipates wireless service revenue to grow positively beginning in 2018.
Additionally, Verizon anticipates its full-year 2017 adjusted EPS trend to be similar to 2016, which excludes the impact from one-time items. Verizon also foresees capex to come in the $16.8 billion to $17.5 billion range for 2017.