What To Expect From Verizon's (VZ) Q3 Earnings

Telecommunications giant Verizon (NYSE:VZ) will be reporting results this Wednesday before market hours. Here’s what investors should know.

Verizon beat analysts’ revenue expectations by 2.3% last quarter, reporting revenues of $34.5 billion, up 5.2% year on year. It was a satisfactory quarter for the company, with a decent beat of analysts’ revenue estimates. It added 162,000 customers to reach a total of 146.1 million.

Is Verizon a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Verizon’s revenue to grow 2.7% year on year to $34.23 billion, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $1.19 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Verizon has missed Wall Street’s revenue estimates four times over the last two years.

Looking at Verizon’s peers in the consumer discretionary segment, some have already reported their Q3 results, giving us a hint as to what we can expect. AT&T delivered year-on-year revenue growth of 1.6%, meeting analysts’ expectations, and Nike reported revenues up 1.1%, topping estimates by 6.5%. AT&T traded down 5.4% following the results while Nike was up 6.5%.

Read our full analysis of AT&T’s results here and Nike’s results here.

Investors in the consumer discretionary segment have had fairly steady hands going into earnings, with share prices down 1.2% on average over the last month. Verizon is down 9.4% during the same time and is heading into earnings with an average analyst price target of $48.50 (compared to the current share price of $39.20).

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