Verizon Communications Inc. (VZ): Three Key Beats In Q2 – Michael McCormack


Verizon Communications Inc. (NYSE:VZ) posted three key beats in their second quarter results, Michael McCormack said in an interview on CNBC.

The insight comes from the Jefferies equity analyst after Verizon Communications Inc. (NYSE:VZ) reported their second quarter 2014 performance which saw the company’s profit nearly double to $4.32 billion, or 78 cents per share, from $2.25 billion in the year-ago quarter driven by their acquisition of full ownership of Verizon Wireless. Revenue was up 5.7% to $32.48 billion from $29.79 billion in the same quarter in 2013.

Verizon, is Verizon a good stock to buy, Michael McCormack, Verizon 2Q 2014,

According to McCormack, the three key beats are:

“I think there are a few things to be focused on – three key beats today that should dispel some of the competitive fears. Number one [is]ARPA growth or the average customer pays per month is up more than expected, [number two is]churn is a little bit lower [and number three is]the wireline margins beat. So those are three things that we feel are key today.”

Nonetheless, the analyst did say that the Verizon Communications Inc. (NYSE:VZ) beats comes with a caveat and that this is that wireless margins came under just a bit of pressure. He said this may have been caused by promotional activity around tablets and generally a bit of an elevated marketing spending.

Asked about what he thinks will happen to Verizon Communications Inc. (NYSE:VZ) towards the end of the year in relation to Apple Inc. (NASDAQ:AAPL) and their rumored iPhone with a bigger screen, McCormack said that his firm has actually been very interested in the second half of this year and whether the carrier will see good upgrade trends for this period. According to the analyst, every time Apple comes up with a new device, there tends to be higher upgrade activity.

Watch the video below where Verizon Communications Inc.’s (NYSE:VZ) marketing was discussed more in depth.

Disclosure: None

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