Verizon to report third-quarter results: what investors should watch

what happened

Telecom company Verizon will publish its third-quarter results on Monday before the market opens, StockStory reports. Last quarter revenue came in at $34.25 billion, flat year on year, while EBITDA was in line with analyst estimates. The market expects revenue to grow 2.8% year on year, up from 1.5% growth in the same quarter last year. Over the last two years Verizon has missed Wall Street revenue forecasts several times.

Peers offer mixed signals. AT&T posted revenue growth of 5.3% and beat expectations by 2.1%, yet its shares fell 2.9% after the report. Comcast reported flat revenue in line with consensus, and its stock rose 2.8%. Verizon shares are down 5.3% over the past month, trading at $44.57 against an average analyst price target of $51.24.

why it matters

Verizon's report matters for the telecom sector and as a read on the US telecom business more broadly. The reactions at AT&T and Comcast show that investors judge the details, not just headline revenue, so a result in line with forecasts may not lift the stock. Traders will focus on revenue and EBITDA compared with expectations and with rivals.

market impact

US telecom sector: Verizon's results may shift revenue expectations for the industry and move VZ shares

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