Verizon Communications Inc. (#Verizon), the largest US wireless carrier. It is expected to report third-quarter results on Wednesday, Oct. 20, before the market opens, with Zacks forecasting a return per share of $1.36, above $1.25 the year-ago quarter. Sales were forecast at $33.41 billion, above $31.54 billion in the prior-year quarter. Zacks’ past ten-quarter earnings forecasts were nine quarters lower than their actual report. And it’s 6 quarters lower than the actual report for sales forecasts.
During Q3 Verizon continued to aggressively expand its 5G Ultra Wideband service in 82 cities, becoming an alternative to cable broadband in 54 cities. Verizon has been selected by the US Department of Defense to provide 5G wireless services, including c-band radio installations, to seven Air Force Reserve Command Centers.
In Q3, the company also improved some features of its subsidiary BlueJeans, a teleconferencing provider with a variety of cloud platforms, in order for interactions to become more natural and engaging and to make working from home more efficient and enjoyable. The company has also partnered with MasterCard to develop a mobile payment system that will open new ways in product consumption and deliver digital capabilities to small and medium-sized businesses.
And all this is likely to lead to a strong third-quarter earnings report for the company.
However, from the start of the year up until now, #Verizon’s share price has dropped more than -11% and has hit a new 52-week low of 50.86 after the company’s stock sold heavily last week. However, the share price is picked up by Chanel’s bottom line. If the Q3 report is good, we may see the price bounce back to the 54.00 zone (Channel’s midline), in line with the rising RSI from the overbought zone. The share price may retest the previous low in the 51.00 zone, with the next key support at the 49.00 zone, the low area caused by the Covid-19 crisis in early 2020.
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Chayut Vachirathanakit
Regional Market Analyst
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