Verizon Communications, Inc. Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Verizon Communications, Inc. (NYSE:VZ) will unveil its latest earnings on Friday, July 22, 2011. Verizon Communications, Inc. provides communications services through Domestic Wireless and Wireline segments. Verizon to Make These Big Changes to Wireless Pricing Options>>

Verizon Communications, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 54 cents per share, a decline of 6.9% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate moved up, but has dropped from 55 cents during the last month. For the year, analysts are projecting net income of $2.22 per share, a rise of 21.3% from last year.

Past Earnings Performance: The company topped estimates last quarter after missing forecasts the quarter prior. In the first quarter, it reported profit of 51 cents per share against a mean estimate of net income of 50 cents per share. In the fourth quarter of the last fiscal year, it missed forecasts by one cent.

Savvy Investing Tip: Our CHEAT SHEET investing framework recommends only stocks with two straight quarters of earnings growth. Learn More >>

Wall St. Revenue Expectations: On average, analysts predict $27.43 billion in revenue this quarter, a rise of 2.5% from the year ago quarter. Analysts are forecasting total revenue of $110.65 billion for the year, a rise of 3.8% from last year’s revenue of $106.56 billion.

Analyst Ratings: Analysts are bullish on Verizon Communications as 13 analysts rate it as a buy, three rate it as a sell and 16 rate it as a hold.

Key Stats:

A year-over-year revenue increase in the first quarter snaps a streak of three consecutive quarters of revenue declines. Revenue rose 0.3% in the first quarter and fell 2.6% in the fourth quarter of the last fiscal year, 2.9% in the third quarter of the last fiscal year and 0.3% in the second quarter of the last fiscal year.

Competitors to Watch: AT&T Inc. (NYSE:T), Sprint Nextel Corporation (NYSE:S), MetroPCS Communications, Inc. (NYSE:PCS), Vodafone Group Plc (NASDAQ:VOD), CenturyLink, Inc. (NYSE:CTL), NTELOS Holdings Corp. (NASDAQ:NTLS), Leap Wireless Intl., Inc. (NASDAQ:LEAP), Windstream Corporation (NASDAQ:WIN), and United States Cellular Corp. (NYSE:USM).

Stock Price Performance: During June 17, 2011 to July 18, 2011, the stock price had risen $1.66 (4.7%) from $35.05 to $36.71. The stock price saw one of its best stretches over the last year between March 16, 2011 and March 31, 2011 when shares rose for 12-straight days, rising 12.4% (+$4.13) over that span. It saw one of its worst periods between July 8, 2011 and July 18, 2011 when shares fell for seven-straight days, falling 2.1% (-77 cents) over that span. Shares are up $2.29 (+6.7%) year to date.

(Source: Xignite Financials)

Get Actionable Investing Insights: Check Out Wall St. Cheat Sheet’s newest Feature Trades of the Month!