Verizon share price: 3 things to watch for in its Q1 results
The communications company has to answer these three questions before its Q1 earnings report.
Verizon share price could be dependent on these three factors. Here are three questions investors could ask before Verizon's Q1 earnings report.
Will Verizon's Q1 earnings meet expectations?
Verizon had a mixed Q4 revenue report with high earnings and worse-than-expected revenue. Verizon’s Q1 revenue was projected by the company to have single-digit percentage growth. Wall Street expects Verizon’s Q1 earnings per share to be $1.17. Verizon’s Q1 revenue is predicted to be $32.2 billion.
Because of the 2018 US corporate tax cuts, the communications company’s cash flow is also predicted to increase to $17.17 billion. Investors will be eager to see if Verizon’s Q1 earnings will meet the corporation’s or Wall Street’s expectations.
How will 5G technology affect Verizon’s Q1 profits?
Verizon’s Q1 earnings may depend heavily on being the first US company to offer 5G service to mobile devices. The super-fast speeds for mobile networks could be instrumental to improving Verizon’s Q1 profits. While Verizon’s 5G has just launched in some US cities, the company is hoping that updating its wireless network will help increase Verizon’s Q1 revenue.
The corporation will invest about $18 billion in 5G technology throughout the year, a 2-8% increase in expenditures. Mike Haberman, Verizon’s vice-president of network engineering, said that 5G technology will help Verizon’s Q1 profits.
‘We're not merely relabeling a technology. [5G] is meaningful,’ said Haberman.
Will corporate partnerships help Verizon’s Q1 results?
Verizon is using its 5G technology to partner with the National Football League( NFL) to improve American football fans’ phone experiences in stadiums. NFL commissioner, Roger Goddell, touted the new deal.
‘As the promise of 5G technology nears, I’m excited to enter into this innovation partnership with Verizon, which should again bring a multitude of benefits to our millions of fans worldwide,’ said Goddell.
Verizon spoke about using 5G to help customers use the new technology to enjoy an American football game.
‘Today’s announcement is another milestone in Verizon’s long-standing relationship with the NFL. The Innovation Partnership will use Verizon’s 5G technology to unlock new and exciting ways for NFL fans to view, share, and engage with their favorite teams no matter where they are. From the living room to the stadium, 5G will transform the sports experience,’ said Verizon in a statement.
Verizon is hoping that strategic partnerships with other corporations will help expand its fledgling 5G network and increase Verizon’s Q1 earnings.
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