Earnings Recap Cheat Sheet: Dow Darling Verizon (VZ) Delivers Cash Flow
Earnings: Q2 profits of $.58 vs. $.56 consensus and $.52 in Q2 last year. Profits jumped 11.5% Year-over-Year. If you account for the $2.3 billion employee severance program charge this quarter, Verizon (VZ) actually lost $.07 per share.
Revenue: Decreased a fraction of 1% Year-over-Year at $26.77 Billion vs. $27.11 Billion consensus, missing top-line expectations.
Ivan Seidenberg, Verizon Chairman and CEO, stated “Our cost-reduction efforts are gaining momentum, and trends in the global business market are showing signs of stabilization.”
Comment: Shares of Verizon (VZ) are trading up over 1% following the company’s earnings release this morning, trading at $27.38 per share, compared to yesterday’s closing price of $27 per share.
As you can see above, Verizon (VZ) shares are trading below both its 50-day and 200-day moving price average, typically not a healthy technical sign for the stock at this moment in time. Look for the stock to recover its 50-day moving price average in order to reinforce a confident long position. Meanwhile, Verizon (VZ) is paying a 7.2% annual dividend, the true bread-and-butter for sparking the interest of longer-term shareholders looking to receive consistent cash flow of their long position. If Verizon shares can rise above $28 per share and hold firm, it is very possible you could see a range bound move to $30 per share with a very solid 7.2% annual dividend, a dividend under no threat after 29.8% deliverance of higher cash flow on today’s earnings report from Verizon.
For more detailed information on the Verizon earnings release, visit here.
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Disclosure: No positions in the stocks mentioned.