Using Visible Alpha, we took a four step process to evaluate Verizon Communications after their earnings announcement on Tuesday.
Come into each earnings season with a game plan. As companies report and provide earnings previews, sift through the noise and hone in on insights that really matter.
1. Merger rumors? Instantly evaluate financial and operational metrics of potential targets in detail. Rumors of a potential Verizon/ Charter Communications merger in the The Wall Street Journal had the street buzzing yesterday.
Using Visible Alpha’s in-depth comp tables, you can uncover unique insights into the competitive landscape of several industries. For example, instantly compare Charter’s key metrics, such as Average Number of Video Subscribers or Total Broadband subscribers, with its key competitors, Dish and Comcast.
2. Surprise Analysis: Examine the segments that surprised investors.
Keep a pulse on every significant company segment, not only top line revenue or major segments.
In this example, it may appear that revenue came largely in line with estimates, however Equipment Revenue and Strategic Services Revenue outperformed and underperformed by significant margins, respectively.
3. Explore how estimates have changed over the past week. Have analysts become more bullish or bearish on key operating metrics for Verizon since they reported?
As highlighted below, consensus became bearish in Verizon’s ability to add subscribers to its wireless business in 2017 and 2018. A majority of the downgrade can be attributed to Verizon’s Postpaid business, where Analysts reduced their estimates by almost 20%.
4. Download the most recent models from the analysts you follow.
Instead of chasing your salesperson or analyst via email and phone, Visible Alpha’s Model Library becomes a one-stop shop for all your model needs.
Uncover insights in the stories that consensus does not tell. Request access to Visible Alpha today.