“Can you hear me now?” has to be one of the most memorable lines from an ad campaign in history. That campaign was a major win for Verizon Wireless. It helped the company gain market share and reduce customer turnover making it one of the most competitive entities in the industry. Verizon has positioned itself as an industry leader in communications, information and entertainment products and services for consumers, businesses and governmental agencies. It functions in two main divisions: Verizon Wireless and Wireline. Verizon Wireless’ main products and services are wireless voice and data services over both 4G LTE and 3G networks, and equipment sales around the United States. Wireline offers products and services that…show more content… Literature Review
In January 2015, Verizon Communications (NYSE:VZ) released its annual earnings data. The company reported $0.71 EPS for the quarter, missing the Thomson Reuters consensus estimate of $0.73 by $0.02. The company had revenue of $33.19 billion for the quarter, compared to the consensus estimate of $32.67 billion. Analysts expect that Verizon will post $3.66 EPS for the current fiscal year.
In February 2015, Standard & Poor 's Ratings Services revised its rating outlook on Verizon from positive to stable assigning the company a 'BBB+ ' corporate credit rating. "The outlook revision reflects our revised expectation that Verizon 's fully adjusted debt to EBITDA will remain above our 2.75x threshold for an upgrade through 2016, and that the company will not achieve this target until 2017, at the earliest," said Standard & Poor 's credit analyst Michael Altberg. "As a result, we now believe that an upgrade is less likely over the next 12-18 months, compared with our previous expectation in August 2014, when we had revised the rating outlook to positive from stable." The following factors influenced the current estimate:
• Verizon 's moderately higher spending and the less spectrum it acquired in the Advanced Wireless Services 3 (AWS-3) auction ($10.4 billion versus our original expectation for approximately $8 billion);
• A lowered base-case forecast for the wireless segment in 2015 due to intense competition and