The Zacks Analyst Blog Highlights: Verizon Communications, AT&T, China Mobile, Vodafone Group and SK Telecom
For Immediate Release
Chicago, IL – October 24, 2014 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the Verizon Communications Inc. (VZ-Free Report), AT&T Inc. (T-Free Report), China Mobile Ltd. (CHL-Free Report), Vodafone Group Plc. (VOD-Free Report) and SK Telecom Co. Ltd. (SKM-Free Report).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Thursday’s Analyst Blog:
Telecom Stock Roundup
In the last week, most of the major telecom stocks traded in the positive. This despite the fact that telecom behemoth Verizon Communications Inc. (VZ-Free Report) and AT&T Inc. (T-Free Report) failed to meet both the top and bottom line of the respective Zacks Consensus Estimate in the third quarter of 2014.
Chinese telecom giant China Mobile Ltd. (CHL-Free Report) also reported weak financial results for the third-quarter of 2014. Nevertheless, the positive outcome is that all three large telecom operators continue to gain subscribers.
Meanwhile, Vodafone Group Plc. (VOD-Free Report) is set to become the first wireless operator in the U.K. to offer LTE-A (Long-Term Evolution Advanced) service.
Recap of the Week’s Most Important Stories
1. Verizon reported disappointing financial results for the third quarter of 2014. Lower-than-expected financial results were primarily due to higher cost of services and sales and higher interest expenses. Quarterly net income came in at $3,794 million or 89 cents per share compared with $5,578 million or 78 cents per share in the year-ago quarter.
However, earnings per share of 89 cents fell below the Zacks Consensus Estimate of 92 cents. Quarterly total revenue increased 4.3% year over year to $31,586 million but lagged the Zacks Consensus Estimate of $31,707 million. (Read More:Verizon (VZ) Misses on Q3 Earnings, Revenues.)
2. China Mobile, the largest wireless operator of China reported disappointing financial results for the third quarter of 2014. Both total revenue and net earnings declined year over year. Net profit dropped for the fifth successive quarter.
The dismal performance can be largely attributed to five reasons, including (1) slowing down of growth in the Chinese mobile market (2) higher expenses related to 4G TDD-LTE network rollout (3) increased customer retention costs (4) newly imposed value-added taxes and (5) intensifying competition. (Read More: China Mobile Q3 Earnings, Revenues Decline on Rising Costs.)
3. Vodafone, the largest wireless carrier in Europe has decided to install LTE-A (Long-Term Evolution Advanced) network in Birmingham, London and Manchester this month. The company will become the first wireless carrier in the U.K. to commercially offer LTE-A service. In Jun 2013, SK Telecom Co. Ltd. (SKM-Free Report) of South Korea became the first wireless operator in the world to commercially launch LTE-A network using carrier aggregation. In Mar 2014, AT&T became the first wireless operator in the U.S. to launch LTE-A services in Chicago. (Read More:Vodafone Spearheads LTE Advanced Network Launch in U.K.)
4. AT&T is likely to witness strong momentum in both its Wireline and Wireless businesses. Continued strength in the smartphone business owing to the mobile share plan is driving the carrier’s wireless business. With respect to the Wireline segment, management expects positive business trends to continue in the coming quarter driven by strong business revenues and enhanced strategic services.
However, the company faces several limitations in the wireless spectrum division. It recently received a restriction from the Federal Communications Commission regarding substantial airwave acquisitions in the upcoming auction. On the financial front, promotional costs associated with Project Velocity IP and Agile pose major impediments in the company’s growth trajectory. (Read More: Will AT&T (T) Disappoint Earnings Estimates this Season?)
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.
Get the full Report on VZ - FREE
Get the full Report on T - FREE
Get the full Report on CHL - FREE
Get the full Report on VOD - FREE
Get the full Report on SKM - FREE
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
http://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Read the analyst report on VZ
Read the analyst report on T
Read the analyst report on CHL
Read the analyst report on VOD
Read the analyst report on SKM
Zacks Investment Research
