Verizon Communications Inc.


VZ

is scheduled to report first-quarter 2022 results on Apr 22, before the opening bell. In the last reported quarter, the telecom giant beat the Zacks Consensus Estimate by 3 cents, delivering a surprise of 2.3%.

The company is expected to have recorded higher aggregate revenues year over year, primarily due to the positive momentum in its core wireless business.

Factors at Play

During the first quarter, Verizon announced that more than 100 million people in 1,700-plus cities will have access to its 5G Ultra Wideband network with accelerated deployment of virtualized network infrastructure to meet customers’ personalized needs in real time. It has deployed the C-Band spectrum to further expand its 5G coverage. The company is witnessing significant 5G adoption and fixed wireless broadband momentum, while increasing demand for premium mobility and broadband offerings instill optimism. This is likely to get reflected in the upcoming quarterly results.

Verizon collaborated with Amazon Web Services to offer mobile edge computing in Charlotte, Detroit, Los Angeles and Minneapolis. Verizon 5G Edge with AWS Wavelength, a cloud computing platform, brings AWS compute and storage services to the edge of Verizon’s wireless network. It also inked a definitive agreement with BlackRock, Inc. to build a secure private 5G network at the latter’s new global headquarters at 50 Hudson Yards in New York. The contract marks the first commercial implementation of Verizon Business’ On Site 5G private network solution in the United States. On Site 5G is a secure, scalable, wireless network that offers a transformative on-premises, private 5G network for business enterprises. This customized solution enables firms hitherto crippled with coverage gaps, lost connectivity, fractured security, data congestion and inconsistent service quality to have a dedicated capacity with adequate bandwidth to minimize costly downtime and missed opportunities. These developments are likely to have had a positive impact on Verizon’s performance.

During the quarter, Verizon collaborated with Amazon Web Services to fully migrate its fleet management software platform – Verizon Connect Reveal – to the cloud service subsidiary of Amazon.com, Inc. This is likely to deliver a better experience to customers and help business enterprises use connected data for driver safety and sustainability. In addition, to test the efficacies of 5G and mobile edge computing in connected and autonomous vehicles, it collaborated with Cisco Systems, Inc. to prove that autonomous driving could be achieved without using costly physical roadside units to extend radio signals. The test results are likely to sow the seeds for a simpler approach to autonomous driving and reduce costs without compromising on security issues. These initiatives are likely to have translated into incremental revenues in the quarter.

For the March quarter, the Zacks Consensus Estimate for revenues is pegged at $33,383 million, which indicates a 1.6% improvement from the year-ago quarter’s reported figure. The consensus estimate for adjusted earnings per share is pegged at $1.35, which suggests an increase of 3.1%.

Earnings Whispers

Our proven model does not predict an earnings beat for Verizon for the first quarter. The combination of a positive

Earnings ESP

and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.

Earnings ESP:

Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -0.88%, with the former pegged at $1.34 and the latter at $1.35. You can uncover the best stocks to buy or sell before they’re reported with our

Earnings ESP Filter

.

Zacks Rank:

Verizon has a Zacks Rank #3.

Stocks to Consider

Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:

Microsoft Corporation


MSFT

is set to release quarterly numbers on Apr 26. It has an Earnings ESP of +0.03% and a Zacks Rank #3. You can see


the complete list of today’s Zacks #1 Rank stocks here


.

The Earnings ESP for

Nokia Corporation


NOK

is +28.57% and it carries a Zacks Rank of 2. The company is set to report quarterly numbers on Apr 28.

The Earnings ESP for

Apple Inc.


AAPL

is +1.78% and it carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Apr 28.

Stay on top of upcoming earnings announcements with the

Zacks Earnings Calendar

.

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