Telecom & Wireless

Top Telecom and Cable Earnings This Week

24/7 Wall St. has put together a preview of some of the major telecom and cable companies reporting their quarterly results this week. With earnings season upon us, it is important to see what most major companies will report and how it will set a direction for the market. We have included the consensus earnings estimates from Thomson Reuters and the stock price and trading history, as well as added some additional color on each.

For a look at other big earnings in the week ahead, see our preview of top Dow earnings.

Be advised that the earnings and revenue estimates may change ahead of the formal reports, and some companies may change reporting dates as well.

Verizon

Verizon Communications Inc. (NYSE: VZ) will report its most recent quarterly results on Tuesday. The consensus estimates call for earnings per share (EPS) of $1.00 and $32.45 billion in revenue.

Streaming content on mobile devices has been a huge trend in the market in recent years. We have seen the likes of Facebook introduce video ads in its platform, or even Google introduce them on YouTube. Verizon is now getting in the game with its most recent deal. The company announced a multiyear content licensing agreement with Scripps Networks Interactive, which is one of the world’s leading developers of lifestyle video content. This is in conjunction with Verizon’s mobile first video offering.

ALSO READ: 3 Merrill Lynch High-Yielding Telecom Stocks to Buy Now

Shares of Verizon were at $47.59 on the close on Friday, in a 52-week trading range of $45.09 to $53.66. The stock has a consensus analyst price target of $51.92.

Comcast

Comcast Corp. (NASDAQ: CMCSA) is scheduled to report its second-quarter results on Thursday. The consensus analyst estimates call for $0.84 in EPS and revenue of $18.13 billion.

The stock was recently added to the Russell 1000 and could have big upside potential. Comcast is a leading media stock and is growing earnings substantially with extremely strong content revenue growth. Increased revenue at NBC Universal is also giving the company some earnings tailwinds, and a growing sports lineup is adding to revenues. After over a year of haggling with regulators, the company abandoned plans in the spring to acquire Time Warner Cable, which was ultimately bought by Charter Communications. Comcast reported better-than-expected profit and revenue growth in its first quarter, as its broadband division logged its strongest revenue growth in more than four years.

Shares of Comcast closed at $64.27 on Friday. The consensus price target is $67.96. The 52-week trading range is $49.33 to $64.65.

AT&T

AT&T Inc. (NYSE: T) is set to share its latest quarterly earnings on Thursday. The consensus estimates call for $0.63 in EPS and $33.04 billion in revenue.

ALSO READ: 3 Telecom and Cable Stocks With Safety and Huge Free Cash Flow

Until recently, very recently, this company was considered down and out. There was just no catalyst at all. Now the company is nearer to closing in on its DirecTV acquisition. Suddenly, analysts see massive upside for AT&T, compared to its views in the gutter just a few months ago. Investors are paying attention. AT&T provides the highest dividend yield among the mega-caps at 5.39%. With the close of the DirecTV acquisition, the dividend payout will improve to 70% (from 96% as a standalone figure last year), providing a much more comfortable level for sustainable dividend growth going forward, as the company will have a much safer margin for coverage.

Shares ended the week at $35.01, in a 52-week trading range of $32.07 to $37.48. The stock has a consensus analyst price target of $36.74.

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