Verizon Earnings on Deck

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S&P 500 (NYSE:SPY) component Verizon Communications (NYSE:VZ) will unveil its latest earnings on Thursday, October 18, 2012. Verizon Communications provides communications services.

Verizon Communications Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 65 cents per share, a rise of 16.1% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 66 cents. Between one and three months ago, the average estimate moved up. It has dropped from 67 cents during the last month. Analysts are projecting profit to rise by 15.3% versus last year to $2.48.

Past Earnings Performance: Last quarter, the company met expectations by reporting net income of 64 cents per share last quarter. In the previous first quarter, the company beat estimates by 2 cents.

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A Look Back: In the second quarter, profit rose 13.4% to $1.82 billion (64 cents a share) from $1.61 billion (57 cents a share) the year earlier, meeting analyst expectations. Revenue rose 3.7% to $28.55 billion from $27.54 billion.

Stock Price Performance: Between October 8, 2012 and October 12, 2012, the stock price dropped $1.95 (-4.2%), from $46.57 to $44.62. The stock price saw one of its best stretches over the last year between November 25, 2011 and December 6, 2011, when shares rose for eight straight days, increasing 8.4% (+$2.97) over that span. It saw one of its worst periods between January 17, 2012 and January 27, 2012 when shares fell for nine straight days, dropping 4.5% (-$1.77) over that span.

Wall St. Revenue Expectations: On average, analysts predict $28.98 billion in revenue this quarter, a rise of 3.8% from the year-ago quarter. Analysts are forecasting total revenue of $115.36 billion for the year, a rise of 4% from last year’s revenue of $110.88 billion.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 5.4% in the third quarter of the last fiscal year, 7.7% in the fourth quarter of the last fiscal year and 4.6% in the first quarter before increasing again in the second quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.03 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

Analyst Ratings: There are mostly holds on the stock with 18 of 31 analysts surveyed giving that rating.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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